Multi-Family Building Investing In Chicago, IL

Multi-Family and Apartment Investing
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Multi-Family Building Investing In Chicago, IL

Janice Anthony
Investor · Chicago, IL · Member since 2018 · 6 posts · 2 votes

Hi Everyone, Happy New Year! I hope all is well with you guys! When you are an investor in Real Estate and you can't quite find what you are looking for (area, interior design, etc.) because you plan to live in the property for a while to save money and then move out, rent that unit out as well and then go get your own house in the future. So you buy a piece of land to have a 3 unit residential building built, to live in one and rent out the other two but most banks that you have reached out to in Chicago, IL states that they only approve new construction loans for two unit properties. Do you guys have any suggestions as to what banks will approve such a project as this with 3 or more units? 

Thanks in advance!

Janice

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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
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@Janice Anthony you can contact a few of the local banks that will do new construction. I believe the Wintrust banks are pretty aggressive with this type of product, but you will definitely want to go local for something like this. It won't be as attractive as an owner occupied rate though. 

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  • Erik Hatch
    Rental Property Investor · USA · Member since 2018 · 325 posts · 222 votes
    5y

    @John Warren

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  • Paul De Luca
    Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    @Janice Anthony

    What areas were you searching in for your house hack? Sure, there's low inventory and it's a slower time of year for the real estate market. But surely it makes more sense to find an existing 3-unit you could house hack rather than construct a new one?

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  • Janice Anthony
    OP
    Investor · Chicago, IL · Member since 2018 · 6 posts · 2 votes
    5y

    @Paul De Luca Hi, I actually already purchased the vacant land in the Chicago area but is looking for a lender that will finance the 3 unit new construction project. Most banks that I've contacted stated that they only do new construction loans for 2 units or a house. 

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  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    5y

    @Janice Anthony you can contact a few of the local banks that will do new construction. I believe the Wintrust banks are pretty aggressive with this type of product, but you will definitely want to go local for something like this. It won't be as attractive as an owner occupied rate though. 

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  • Janice Anthony
    OP
    Investor · Chicago, IL · Member since 2018 · 6 posts · 2 votes
    5y

    @John Warren Thanks so much for the information! Appreciate it. 

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  • Jonathan KlemmBusiness Member
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    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Janice Anthony - I totally agree you are going to have to find someone local.  We are in the process of a new spec build single-family and figuring out financing right now is not easy.

    I can definitely make some introductions for you with some banks that might be able to help.  PM meand we can talk more about your project and see how we can help! 

    [email protected]
    Quality Builders4.966 Reviews
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  • Janice Anthony
    OP
    Investor · Chicago, IL · Member since 2018 · 6 posts · 2 votes
    5y

    @Jonathan Klemm Thank you so much for your input, that would be great!

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