New Ground up Construction Loan Lender

[Ravi Karuturi]

Hi,

I am analyzing a deal where in i want to buy a land and build some apartments. what would the Lenders look for in this scenario. I am trying to raise money from Friends and Family for putting together the down payment needs. Say the project is worth all in 10 million how much do i need to come up with?

[Michael Le]

Lenders will be looking for experience, first and foremost. So either you or someone on your team will need to have some ground-up development experience in multifamily. And the debt market is really tough right now so likely you'll be around 50% LTC, so you'll need around $5M in equity.