Funding - Converting 11,00 sqft warehouse into apartment units

Multi-Family and Apartment Investing
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Funding - Converting 11,00 sqft warehouse into apartment units

John Francis
Member since 2020 · 6 posts · 1 vote

What's the best funding source for financing the conversation of 11,000 sqft warehouse into apartment units in Hickory, NC? Do you know of any federal or state grants or Gov't backed loans?

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  • Jared RineBusiness Member
    Lender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
    6y

    @John Francis 

    Private money is going to likely be the way to go on this, even if you're a solid borrower.  Then refinance into a good long term loan.  What type of numbers are we talking?  How many units?  

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  • John Francis
    OP
    Member since 2020 · 6 posts · 1 vote
    6y

    @jared rhine  Thanks.  Have 15 acres altogether.  Phase 1 will be to convert the warehouse into 15 apartment units.   Looking at approximately $800,000 for that phase.

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  • John Francis
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    Member since 2020 · 6 posts · 1 vote
    6y

    Thanks. Have 15 acres altogether. Phase 1 will be to convert the warehouse into 15 apartment units. Looking at approximately $800,000 for that phase.

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  • Greg Dickerson
    Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    6y
    Originally posted by @John Francis:

    What's the best funding source for financing the conversation of 11,000 sqft warehouse into apartment units in Hickory, NC? Do you know of any federal or state grants or Gov't backed loans?

    Local and regional banks are your best bet for a project like this. You will need to be a qualified borrower with strong financials and a track record or experienced team working for you one the project. Tax credits will depend on the area and type of product you are bringing online. You can check with the city and state regarding those issues.

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  • John Francis
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    Member since 2020 · 6 posts · 1 vote
    6y

    @Greg Dickerson Thanks. Inquired about tax credits but the process is too long. Was hoping to get a low interest loan or grant through HUD or SBA. Have a line of credit with TD but had to use $800K on cash for collateral. Also, trying to refinance to release my cash.

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  • Shirley Gregory
    Asheville, NC · Member since 2015 · 83 posts · 19 votes
    6y

    Hey John - You could try Andrew Jackson at First Community Bank in Taylorsville.  Great guy, if he can make it work he will.  Where abouts is your property in Hickory?   

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  • John Francis
    OP
    Member since 2020 · 6 posts · 1 vote
    6y

    @ Shirley Thanks.   Will reach out to Andrew Jackson.   It's where the Old Shufford Mills was located. 

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  • John Francis
    OP
    Member since 2020 · 6 posts · 1 vote
    5y

    Not finding any funding.  Thinking about selling the property.

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