I’m looking into getting into the funding side of the land business and am currently in the research phase. There are a lot of great podcasts out there (thanks Seth!), but I was wondering if anyone here could help me dig a little deeper into the details by sharing templates or actual contracts you have used for any type of lending or funding you have been involved with.
I’m not committed to any specific type of lending/funding yet. Transactional lending and seller-financing/note-buying are currently at the top of my list, but I’m open to anything at this point.
If you have any examples of lending/funding paperwork you can share, I would really appreciate it! Thank you
Hey @Brian_Formosa, great questions! I’m assuming you’ve already seen this?
Note that you can get my funding template at the bottom of that blog post, which was designed to be pretty versatile.
But, I recommend you start by understanding the type of funding you want to do. Those things you mentioned (lending, funding, transactional lending) are all quite different in how they work, the timelines, the paperwork, etc. Before trying to tackle all of them, I would start by trying to tackle one and get some experience with that one format of land funding.
Also, the term ‘funding’ is pretty vague because nobody has figured out a consistent, universal way to refer to each type of deal structure (probably because there are so many different ways to do it).
For example, if you want to fund 100% of a deal and hold title to it while the operator subdivides and sells it… That’s very different from extending a mortgage-backed loan to a land investor/operator. Neither one is better or worse than the other, but it’s a lot of work to wrap your head around how each one works. Try to figure out what you want out of the deal (what kind of ROI and timeline, how much or little work involved, how much risk you’re willing to tolerate, etc), and pursue the types of deals that align with what you need.
If you don’t even know what you want yet, then that’s probably the first thing to figure out.
Thanks Seth! Once I dive in to the actual lending, I do plan to only use one or two methods. Like you said, right now I am only trying to understand them better in order to determine which of those methods to start out with. There are so many options!
With this post, I just wanted to toss a line out to see if anyone would be willing to share any templates or paperwork they’ve used in the lending/funding transactions they’ve done to help me understand more of the details and nuances of each option.
@Brian_Formosa, have you ever explored getting funding from a funder? That might be one way to get a copy of their contract to see how they have it set up… not saying you should do it how they do it, but it would at least give you some context.
I haven’t. I’ve only used my own funds for my purchases so far. If I don’t get any good paperwork examples from posts here and on fb, I’ll reach out directly to some funders to see if they’d be willing to share their forms. As always, appreciate your help!
