I have tried a couple of hard money lenders one said not for us and the other said once we have slab on grade and utilities they would be ready to finance (no letters of intent only email stating and no interest rate... One Bank said if I had a sales contracts they would be interested. Property is free and clear Any Ideas on getting a loan to build?
I would recommend private finance. If the dog can hunt many will want him. The market can always be counted on to nurse the strong and kill the weak, sorry for the cliches but when we find a deal that no one want to finance it usually is not a deal.
Figure the whole deal out and try and "wholesale" it to someone, something your use to doing. Then in doing so you get a better handle on the deal, money will just show up. It always does if it's a real deal, my guess is your missing something. In Southern California entitlements cost upwards of 125 to 200 thousand per lot. I was blown away at just how much it all cost and with a smaller development there are less sales to spread your cost around.
I've got that option on the table...looking for a firm commitment to build and I don't know the hard money market well.
like you say just not there yet start slab work next or begin of following week.
The only funders I'm aware of doing this would be had money and only interested in the east and north east
The company I work for is now offering a Proactive Line of Credit, which means the property doesn't need to be in place to qualify for this product.
Perhaps this could help you?
Please feel free to send me a connect request to discuss further,
It would help to know more about your project:
1. At what stage of development are you?
2.Are all permits in place just waiting to be pulled?
3. Do you have complete loan package that includes the following:
§Description of the project
§Description of the area with study proving to the bank that your product would sell.
§ Complete cost break down with bid from licensed contractor.
§And on, and on, and on……….
One would need much more information to form an opinion why you are having a problem.
Not having problem I may have stated that wrong. Banks tell you what is needed up front and hard money folks are a bit less revealing or up with information. Have permits all in hand. Lots are cleared slab on grade and utilities will be complete with the next 2 weeks. Since the post I have reached out and will be accepting an offer to finance this week.
Thanks for the heads up everyone line of credit does sound interesting as well.
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