Commercial Development - Corporate Housing, single family homes
Currently, my company has 46 homes in Chicagoland, all furnished. We rent them to companies, and they stay occupied. Monthly revenues are $220-250k, Profits are healthy (Site: www.leaseFHS.com).
I'd like to build 3 homes in TN, or SC (haven't finalized yet) same concept. Only difference, building versus buying (personal preference, long story).
The project will be 3-4 mil.
I can navigate the waters when discussing personal home loans, but when venturing into a commercial loan to develop/build homes, definitely not my space.
What should we be thinking about, and where do we start?
Of course, we will be speaking to experts after we file our taxes in March, but I wanted to start with BP, so I can start mentally preparing.
Thanks for reading, and super thanks for responding!
In the private lending industry, most lenders require experience with renovations before they offer a new construction loan to someone. Your name being on the Hud for multiple properties might enough to qualify for a single family new construction loan.
After a few successful deals in that area, they're willing to lend for the construction of multifamily homes
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Lender
- The Trinity Company, LLC
@Bob Wilson I hope you know that you can do cost segregation studies on rental homes as well. If you haven't done this, you are likely leaving a LOT of money on the table that could be reinvested in new properties. I am available if you have additional questions. You may not need as much in a commercial loan as you think you do.
