Hey fellow investors, I hope you are all crushing it out there. I have come to seek counsel from the collective brain trust here at BP. So I am looking to do a potential 40+ condo conversion unit from an old mill. I am looking for advice from anyone that has actually done this on the financing side. I have the experience actually doing the construction side for the last 2 decades. Now I am looking to be the one improving, and owning it. Any help here is appreciated. I am a buy and hold investor with several properties currently so REI is something I am familiar with, just not on the commercial side as of yet. This could be a buy and hold or potential reno and sell. I am really open to both as I enjoy the long term ROI but also see the potential of making less of ROI in the short term but increasing my capital to invest into other projects. Thanks in advance!
@Ted Strzelecki congrats on having the initiative. You will need to talk to a commercial lender on this and be aware that they will typically fund 65% of acquisition and construction percent varies. If these are condos your going to have a lot of soft costs as you will need to have a legal team draft condo docs and declarations as well as have one hell of an insurance policy since 99% of condo developers get sued (in most cases it’s because the association figures you will settle as it’s cheaper to settle). I would recommend if it can be apartments that is a much better path to go down.
The lender most likely will want to see schematic design drawings and a feasibility and market study as well. It is best to speak with the lender on what they need, just be aware your probably going to have to spend tens of thousands of dollars to possibly even figure out if you can get financing.
Btw I grew up in ware.
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