Advice on Financing 18 unit townhouse project

[Lesley Resnick]

I am planning on building an 18 unit townhouse community in Murray Hill, Jacksonville.  I am shovel ready, pending a few miscellaneous items.  I own the land.  The architect and civil engineer are finish up.  I have been working with a lender since April.  These projects take time, but I have been forced to fund more of this out of pocket than I was planning, due to the lenders time frame.  The loan was suppose to be done in 3 months and we are at 6 with no end in site.  It is effecting my working capital for other projects.  I could probably fund it myself, but it will take me longer than I would like and force me to pause all other projects.    

I am looking for another funding source. I would take on another lender or a JV partner. I am planning on selling them off to owner occupants, but could easlily convert to a build to rent.

Anyone had this sitiation before?  Suggestions?

I am open to creative solutions.

[Jay Hinrichs]

very tough loans to get and going down the loan broker rabbit hole is frustrating as you are describing.

for me there is only one way.. and that is Community banks..  its hard to bring them the first project but if your local and they are local and you establish good deposit relationship with them and show them your portfolio you can bust through. 

I have been able to get one in Charleston SC  and one I am using in Florida now.. Although the bank in FLA is not small regional its GA based regional .

Other wise for some of my spec loans I did in Charleston when I was at my credit limit with the local bank I used Lima one for over flow.  18 unit might be bigger than they will do.

Can you develop it in phases so your not having to go out on the limb and borrow a big chunk at once ??  or are they all attached and build one have to build all ? 

I have not done townhouses just because of construction defect insurance issues. 

Equity partner is ALWAYS an option but can take time if these partners are not known to you personally.