Real Estate Development & New Home Construction

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Terry Portier
  • Engineer
  • Wichita, KS
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Construction loans

Terry Portier
  • Engineer
  • Wichita, KS
Posted Feb 5 2013, 04:41

Whats the best way to shop for multi-family construction loans?

Anyone know what MFFA is on Fannie May's site and what this site is all about?

https://www.fanniemae.com/multifamily/construction-lenders

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Rolanda Eldridge
  • Investor/Realtor
  • Hoover, AL
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Rolanda Eldridge
  • Investor/Realtor
  • Hoover, AL
Replied Feb 5 2013, 05:56

Recently read an article...Fannie Mae and Lenders finance 33.8 billion in multifamily in 2012..Delegated Underwriting and Servicing(DUS)
Top 10 DUS
1. Walker & Dunlop
2. Wells Fargo Multifamily Capital
3. Beech Street Capital
4 CBRE Multifamily
5 Berkeley Point Capital
6 Bercadia Commercial Mortgage
7 M& T Realty Capital
8 Arbor Commercial Funding
9 PNC Real Estate
10 Greyston Servicing Corp

Good place to start...

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Derrick Moore
  • Lender
  • New York City, NY
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Derrick Moore
  • Lender
  • New York City, NY
Replied Feb 5 2013, 15:15

Its the " Master Foward Financing agreement" - Its guidelines for the lender.

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Terry Portier
  • Engineer
  • Wichita, KS
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Terry Portier
  • Engineer
  • Wichita, KS
Replied Feb 6 2013, 05:58

Got it thanks, this stuff gets confusing! I called a few only to get voice mails or some that had no idea about these programs, but one did tell me to stick in my area for construction loans due to all the inspections it can get expensive. Got to love these bankers and HUD agents that never answer their phones and seldom call you back.

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Victor Belman
  • Ontario, CA
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Victor Belman
  • Ontario, CA
Replied Feb 6 2013, 07:15

The demand for multifamily construction financing is slowly increasing.You can go for FHA insured loans through HUD.

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Derrick Moore
  • Lender
  • New York City, NY
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Derrick Moore
  • Lender
  • New York City, NY
Replied Feb 6 2013, 07:51

Hi Terry,
Are you doing ground up development in Wichita Kansas? A multifamily building?

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Terry Portier
  • Engineer
  • Wichita, KS
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Terry Portier
  • Engineer
  • Wichita, KS
Replied Feb 6 2013, 08:10
Originally posted by Derrick Moore:
Hi Terry,
Are you doing ground up development in Wichita Kansas? A multifamily building?

No not developing yet, getting started on our first duplex. I have a construction company am a paper contractor w/subs to build a complete home and hoping to take my class A GC and pass this week. So this will be my first build, not sure where to start. Going to call a developer where I seen some new lots and see whats up, otherwise look around for vacant lots then put together an estimate, then get some financing while the rates are low, I'm thinking. Also, looking at HUD, Freddie and Fannie, but don't see alot of duplexes.

Any advice from anyone be appreciated!! :)

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Derek Carroll
  • Syndicator and Fund Manager
  • Victor, NY
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Derek Carroll
  • Syndicator and Fund Manager
  • Victor, NY
Replied Mar 24 2013, 18:34

I work for one of the top DUS lenders. here are my thoughts:

you will be best served with a local bank or credit union. even for larger projects many times they're the ones doing the construction with the institutional investors doing the permanent financing.

also note that i do large scale commercial lending. you may very well find an agency program that will fit your needs on the residential side (less than 5 units)

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Terry Portier
  • Engineer
  • Wichita, KS
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Terry Portier
  • Engineer
  • Wichita, KS
Replied Mar 25 2013, 02:53
Originally posted by Derek Carroll:
I work for one of the top DUS lenders. here are my thoughts:

you will be best served with a local bank or credit union. even for larger projects many times they're the ones doing the construction with the institutional investors doing the permanent financing.

also note that i do large scale commercial lending. you may very well find an agency program that will fit your needs on the residential side (less than 5 units)

Ok thx but what do you mean by "agency programs" I think I am looking at two homes, maybe some lots to get started as a builder.