WTK: Using land as collateral for a loan

[rspann]

I thought this was about buying the property you living on in Laventille?

[Mowally]

Thanks man... I just needed alil guidance. I've been burnt badly before when coming to purchasing property 'under d table'.. so I'm trying to use what's available to me to get what I want.. if yuh no what I mean.

Is tuner dawg... do tell

Your experience might save someone reading this ched from getting burn.

Lol, just don't put down money on no 'property' being sold by a fella driving a 'tida'... doh worry conman thing, he was dealt with (not by my doing eh). Anyways.. I've family willing to help me out with purchasing the property I'm living on. But the property is not able to be mortgaged cus d owner built his houses like a clown. So I'm putting in a cash offer. Any bankers' on this thread?

[Mowally]

I thought this was about buying the property you living on in Laventille?

I confusing yuh man. No property to be bought is in St. Ann's. Property to be mortagaged/ leveraged for loan is in Laventille.

[*KRONIK*]

OPie

Ideally, all you really need for a loan for land is job security and 10% deposit. Once the land has all the approvals and the paperwork is good, you shouldnt have any issues purchasing it.

So question is: why you need to use someone else land as colateral? Is it cant you cant fulfil your end of the loan acquitsition?
I not bashing yuh eh....i just trying to understand exactly whats happening.

Because, TTMF or the bank can easily buy a piece of land for you once you can meet their requirements. No colateral needed.

[Mowally]

OPie

Ideally, all you really need for a loan for land is job security and 10% deposit. Once the land has all the approvals and the paperwork is good, you shouldnt have any issues purchasing it.

So question is: why you need to use someone else land as colateral? Is it cant you cant fulfil your end of the loan acquitsition?
I not bashing yuh eh....i just trying to understand exactly whats happening.

Because, TTMF or the bank can easily buy a piece of land for you once you can meet their requirements. No colateral needed.

I understand your question. I posted in another thread my calamity. My landlord is migrating & wants to sell his property (St. Ann's). His grandfather built 2 separate houses on 8100sqft. T&C states 1 house on residential lot. TtMF & other lenders having a prob with that infraction. Landlord want everything wrapped up by Dec. So I've to by cash.. I don't have 900k, so I'm doing alil information garthering here to see if anybody else had this or a similar experience.

[Mowally]

So I've family with land in Laventille who's willing to help me get a loan.

[rspann]

Almost 2 lots on Laventille? Look you only have to get $850g again.

[*KRONIK*]

Ok understood

But that gonna be hard 1 eh nobody gonna lend 900k just so.
Even with land as a colateral, this transacriin has a lot of redflags for a financing institution.

OPie

Ideally, all you really need for a loan for land is job security and 10% deposit. Once the land has all the approvals and the paperwork is good, you shouldnt have any issues purchasing it.

So question is: why you need to use someone else land as colateral? Is it cant you cant fulfil your end of the loan acquitsition?
I not bashing yuh eh....i just trying to understand exactly whats happening.

Because, TTMF or the bank can easily buy a piece of land for you once you can meet their requirements. No colateral needed.

I understand your question. I posted in another thread my calamity. My landlord is migrating & wants to sell his property (St. Ann's). His grandfather built 2 separate houses on 8100sqft. T&C states 1 house on residential lot. TtMF & other lenders having a prob with that infraction. Landlord want everything wrapped up by Dec. So I've to by cash.. I don't have 900k, so I'm doing alil information garthering here to see if anybody else had this or a similar experience.

[Mowally]

Almost 2 lots on Laventille? Look you only have to get $850g again.

Thanks man I'll take all I can get

[Mowally]

Well the land in Laventille on the EMR. That hadda have some value. Unfortunately selling is not an option. It's not mine to sell. They willing to cosign with me for a loan.

[The_Honourable]

Well the land in Laventille on the EMR. That hadda have some value. Unfortunately selling is not an option. It's not mine to sell. They willing to cosign with me for a loan.

Ok let's set the case...

1. So the St Ann's property where you live and which the two structures are built on, the asking price by your landlord for that is 1M? since you pay the 10% already, 900k (90%) balance outstanding?

2. How much cash you accumulated so far?

3. And well you have to value your family land on the EMR before you go any further since the bank will want one done anyway. How much square footage or lots is this piece of land? I'm assuming 2 lots from the convo above? and if so, are these 2 lots under one deed or two separate deeds?

[Mowally]

Well the land in Laventille on the EMR. That hadda have some value. Unfortunately selling is not an option. It's not mine to sell. They willing to cosign with me for a loan.

Ok let's set the case...

1. So the St Ann's property where you live and which the two structures are built on, the asking price by your landlord for that is 1M? since you pay the 10% already, 900k (90%) balance outstanding?

2. How much cash you accumulated so far?

3. And well you have to value your family land on the EMR before you go any further since the bank will want one done anyway. How much square footage or lots is this piece of land? I'm assuming 2 lots from the convo above? and if so, are these 2 lots under one deed or two separate deeds?

Yes, 90% balance to be paid I've about 100k in cash. Price will be negotiated because, I'm not a millionaire. Yes 2 lots freehold land on EMR in Laventille proper.
All under 1 deed. Yes I'm organizing a valuation for this week.

[Mowally]

I'm taking up my shift. Comments welcomed..

[The_Honourable]

Well the land in Laventille on the EMR. That hadda have some value. Unfortunately selling is not an option. It's not mine to sell. They willing to cosign with me for a loan.

Ok let's set the case...

1. So the St Ann's property where you live and which the two structures are built on, the asking price by your landlord for that is 1M? since you pay the 10% already, 900k (90%) balance outstanding?

2. How much cash you accumulated so far?

3. And well you have to value your family land on the EMR before you go any further since the bank will want one done anyway. How much square footage or lots is this piece of land? I'm assuming 2 lots from the convo above? and if so, are these 2 lots under one deed or two separate deeds?

Yes, 90% balance to be paid I've about 100k in cash. Price will be negotiated because, I'm not a millionaire. Yes 2 lots freehold land on EMR in Laventille proper.
All under 1 deed. Yes I'm organizing a valuation for this week.

Ok. Is the T&C approval for commercial or residential? since it is on the EMR it can be valued as commercial so the value will go up. The counter to that is... it's laventille.

The reason I asked about the deeds, your family can expose 1 lot to the bank loan instead of two. If an unforeseen circumstance happens and the loan goes into default, you loose one lot instead of all two. Since someone have to be present during the valuation, you can ask the valuator how much each lot will cost (or the final valuation figure divided by two for an estimate). If it turns out one lot is enough to cover the loan, you can go that direction. The problem is that time is severely against you. You have to go T&C to get the piece divided into two separate lots and then by a lawyer to have to have a new deed for each lot made and registered. That process is months and that is if T&C gives the approval.

Now if one lot is not enough and all two have to be exposed to the loan, well then you can use the current deed. Until we know the valuation figure, we working by guess. You can ask the landlord for an extension if you show him what you are trying to do.

[ProtonPowder]

Ok. Is the T&C approval for commercial or residential? since it is on the EMR it can be valued as commercial so the value will go up. The counter to that is... it's laventille.

The reason I asked about the deeds, your family can expose 1 lot to the bank loan instead of two. If an unforeseen circumstance happens and the loan goes into default, you loose one lot instead of all two. Since someone have to be present during the valuation, you can ask the valuator how much each lot will cost (or the final valuation figure divided by two for an estimate). If it turns out one lot is enough to cover the loan, you can go that direction. The problem is that time is severely against you. You have to go T&C to get the piece divided into two separate lots and then by a lawyer to have to have a new deed for each lot made and registered. That process is months and that is if T&C gives the approval.

Now if one lot is not enough and all two have to be exposed to the loan, well then you can use the current deed. Until we know the valuation figure, we working by guess. You can ask the landlord for an extension if you show him what you are trying to do.

No
http://webopac.ttlawcourts.org/LibraryJ ... pr2019.pdf

Since it is on the EMR it has commercial potential, but a valuation must be done based upon its highest and best approved use. If you want a piece of land valued as commercial, it must be approved as commercial.

Valuations function on the principle of 'as it stands' and not what aspirational potential it might or might not contain, it must be proven and approved.

There is a reason that banks use a very short list of approved, trusted valuers.

[The_Honourable]

Ok. Is the T&C approval for commercial or residential? since it is on the EMR it can be valued as commercial so the value will go up. The counter to that is... it's laventille.

The reason I asked about the deeds, your family can expose 1 lot to the bank loan instead of two. If an unforeseen circumstance happens and the loan goes into default, you loose one lot instead of all two. Since someone have to be present during the valuation, you can ask the valuator how much each lot will cost (or the final valuation figure divided by two for an estimate). If it turns out one lot is enough to cover the loan, you can go that direction. The problem is that time is severely against you. You have to go T&C to get the piece divided into two separate lots and then by a lawyer to have to have a new deed for each lot made and registered. That process is months and that is if T&C gives the approval.

Now if one lot is not enough and all two have to be exposed to the loan, well then you can use the current deed. Until we know the valuation figure, we working by guess. You can ask the landlord for an extension if you show him what you are trying to do.

No
http://webopac.ttlawcourts.org/LibraryJ ... pr2019.pdf

Since it is on the EMR it has commercial potential, but a valuation must be done based upon its highest and best approved use. If you want a piece of land valued as commercial, it must be approved as commercial.

Valuations function on the principle of 'as it stands' and not what aspirational potential it might or might not contain, it must be proven and approved.

There is a reason that banks use a very short list of approved, trusted valuers.

Yeah i know, that's why i asked if it's T&C approved for residential or commercial, and if commercial the value will be higher than if it was residential. If residential, he can apply for a change of use from residential to commercial to obtain a higher value. As it's on the EMR high chance he'll get thru.

My bad for the miscommunication.

[Mowally]

Hey tuners, I've to investigate & my family is pretty old, they can't remember if they got the land approved... pressure!! But keep d guidance coming. I've some research to do. How long will it take to change it to commercial from residential? Just in case its approved as residential.

[*KRONIK*]

You will need to go to town and country office to get a status letter, to see what the land is, then apply for a change of use if needed.
Its not a short process, can take weeks to months.

[Mowally]

Kk... yea. Another family said they found the status letter. It's not registered for any of the given land uses. Soooooo what kinda time frame I'm looking at to get this piece of land approved?

[rspann]

Op, I find you wasting time. It's been two weeks since you came here with your problem and you keep asking for advice , which is only theoretical . We can say anything here , that does not make it so. You should move with haste and go to the relevant financial institution and present your case , do whatevever you have to do to get concrete information as to your next step. Remember, the owner wants to sell and someone else who has cash or who has access to financing can pull the deal out from under your feet.

[Mowally]

Yea bredren, I'm in a critical position right now. I'm meeting with some ppl this week. Yea, big business men already sinking in dey teeth. But.... I pay meh 10%, so I must get tru man. Thanks for the pep!

[Mowally]

Yea bredren, I'm in a critical position right now. I'm meeting with some ppl this week. Yea, big business men already sinking in dey teeth. But.... I pay meh 10%, so I must get tru man. Thanks for the pep!

[rspann]

Yea bredren, I'm in a critical position right now. I'm meeting with some ppl this week. Yea, big business men already sinking in dey teeth. But.... I pay meh 10%, so I must get tru man. Thanks for the pep!

You pay the 10% but remember you have 90 days to close.

[Mowally]

Yea bredren, I'm in a critical position right now. I'm meeting with some ppl this week. Yea, big business men already sinking in dey teeth. But.... I pay meh 10%, so I must get tru man. Thanks for the pep!

You pay the 10% but remember you have 90 days to close.

Yea.. doh remind meh... I just on here to gather ppl's experiences. Best teacher is experience.

[Mowally]

Tuners, any financiers willing to purchase Freehold land St. James. 2 fixer uppers on property 8100sqft. Land have approvals Owner migrating @ end of Dec. Cash purchase only $890K ono.
Great investment opportunity!! I'm opening up offers to the public as the interested buyer, but I need a financier.

[Mowally]

Tuners, any financiers willing to purchase Freehold land St. James. 2 fixer uppers on property 8100sqft. Land have approvals Owner migrating @ end of Dec. Cash purchase only $890K ono.
Great investment opportunity!! I'm opening up offers to the public as the interested buyer, but I need a financier.

[rspann]

I thought you said it was St Ann's? How can the deal be closed by end of december?what about searches ,deed preparation and execution? Remember it's Christmas week included.So how is this deal going to work? When the financer buys it ,what's next? How do you come into play? What's in it for the financier?

[Kenjo]

I thought you said it was St Ann's? How can the deal be closed by end of december?what about searches ,deed preparation and execution? Remember it's Christmas week included.So how is this deal going to work? When the financer buys it ,what's next? How do you come into play? What's in it for the financier?

Sounding little suspect to rush a buy like land so especially ‘ cash’ but good luck to him and the buyer . Too many people been burnt like this with 5 people paying for the same lot of land . No offense to OP

[rspann]

Opening up offers to the public as an interested buyer. Interesting. The post is misleading as you have nothing to sell and you said you're not in a position to buy .

Why not advertise for a financier alone?

[Mowally]

Tuners, sorry if there's more questions than answers. This is a public forum & of course 'names and places' are changed to provide anonymity. It's legit deal, lawyer on stand by. I know this is an impromptu question & persons won't most likely take it seriously. But I'm unfamiliar with how 'cash purchases' work. Esp since my cash is limited, so I'm looking for options. DM to link of ad on fbk.