Updated almost 15 years ago on . Most recent reply
HUD 221 D4 program question..
Hi Investor gurus,
Hope your day is going well. I found a good deal on a 150 unit new construction the total cost of of the project is approximately 13M. 100% of the loan is sanctioned by HUD. Now the seller want to retire and want to sell the project. I am wondering whether I need to have any working capital to execute the project?
When I draw the money from HUD to pay for the land and the first phase of the project, do I need to pay the mortgage payments immediately or can I defer them until the project is completed and occupied?
However, the seller asking to show proof of funds for 1M before I put an offer. I have no issues showing the proof of funds but I can't use that money as working capital.
I appreciate any help. Thank you very much and have a good weekend.