Home Buying in Atlanta>Question Details

Luis Gomez, Other/Just Looking in Atlanta, GA

Land Loan and Demolition of an old house.

Asked by Luis Gomez, Atlanta, GA Mon Feb 11, 2013

Hello. I would like to know where to get a Lot or Land Loan. I saw this lot in Atlanta, with an old house that needs to be demolished. I would like to get a loan to purchase the land and, if possible, add the cost of the demolition to it. I am talking something around 35k-45k loan total.

Thank you
LG

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9
Morning Luis, the problem I see is that the loan you are getting will be secured by the land and the improvements on the land. If there are no improvements than just the land will secure the loan. I just don't see a mortgage loan being able to do this for you at this price. I'm sure some lenders will chime in here shortly and say the same thing. As I said before, your best bet is a personal loan with some form of equity in your existing home or perhaps something of collateral value.
1 vote Thank Flag Link Tue Feb 19, 2013
Sounds like it is going to take a lot of money from the bank to do this demolition. I didn't think that knocking something down could cost so much. It is too bad it is not a do it yourself kind of project. It would not be very safe if you did it yourself.
http://www.digdigdemolition.com.au
Flag Fri Jan 23, 2015
Interesting, thanks. What's the most expensive part of your renovation? The land or the demolition? In your case, it sounds like the land is what's costing money. You could try and get it for a cheaper price, which would fit under the loan better. Then the demolition would come separately.
Jenn | http://www.ascotdemolition.com.au
Flag Fri Nov 14, 2014
Do you need a legitimate loan of any kind, contact my company via email:elitefinance53@yahoo.com.hk
0 votes Thank Flag Link Sat Feb 23, 2013
Hello.

I want to clarify about my question. I DO NOT wantt o build anything. Do not offer me a Construction Loan or a Rehab Loan. I want to buy the lot, tear dow the old house and keep the lot empty. Just grass on it.
0 votes Thank Flag Link Tue Feb 19, 2013
Most lenders are unable to offer loans under 40k due to the Georgia High Cost Laws.
See http://www.freddiemac.com/sell/guide/bulletins/pdf/iltr021209.pdf

Most land loans require 35% and you are really looking at a construction loan in this case.

You probably have a better chance of doing a personal loan using an asset such as your current home or perhaps some other personal belonging.
0 votes Thank Flag Link Sat Feb 16, 2013
Hi Darrell.
The docuemnt you sent me does not say anything about loans in Georgia for less than 40k.
Flag Tue Feb 19, 2013
Luis,

If your intention is to tear down and rebuild a primary residence or second home I could assist you with a constructioin/perm loan. A renovation loan could also be an option depending on your specific circumstances. I also have access to "Hard Money" if your looking to quickly flip the property.

Sincerely,

Chris Irvin
0 votes Thank Flag Link Wed Feb 13, 2013
It sounds like it depends a lot on the specific situation. Every reason behind a demolition is different. If you want to get a loan, you'll have to talk to someone who understands exactly what you're doing. Otherwise these are all just guesses. http://www.prattcoexcavating.com
Flag Thu Mar 5, 2015
This is similar to the situation that I am currently facing. I own a plot of land that contains an abandoned apartment complex. I want to demolish the buildings and replace them with a strip mall. Since the area is low-income, would I be able to get any grants?

http://www.rockridgeinc.com/demo.htm
Flag Wed Aug 20, 2014
The loan amount is too small. Most likely you'll need to borrow money to "rehab" that building regardless of its condition.
0 votes Thank Flag Link Mon Feb 11, 2013
Hi Luis, Let me put you in touch with my lender to see if there is some type of loan available that may help you out.

Laquita Baez
Licensed Realtor in GA and NJ
Better Homes and Gardens Real Estate Metrobrokers
770.901.0956
http://www.LaquitaBaez.com
0 votes Thank Flag Link Mon Feb 11, 2013
Thank you Rodney for your answer.

I did not mentioned that the house is partially burned. It has to be tear down. There is not way to fix it. Does that make a difference?

Thanks.
0 votes Thank Flag Link Mon Feb 11, 2013
Luis,
You would not be able to use a Lot Loan when there is an exisiting structure on the property. A Lot Loan would be for unimproved or a vacant lot.
0 votes Thank Flag Link Mon Feb 11, 2013
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