I have a 10 acre investment property that I am about to build a SFR on and rent out for AirBnb. I own the property free and clear. I have the plans completed and I'm currently waiting for the county to approve the planset. I have a general contractor I will be using for the ground up build.
Now, I am looking for lenders. Can anyone recommend some lenders? I have been developing some leads on my own, but wonder if they are good, trustworthy, etc.. is there a way to check out a bank or lender? I looked up some on Bankrate, but I am not sure how the scoring works. Other than personal reviews, how best to check them out?
Ideally, I would like to find a loan with 1 closing - Construction to perm. Perhaps a 7/1 or 5/1 ARM during construction with a 3.3% interest rate and then post construction, modify it to a 15 or 30 year fixed mortgage with the original lender or else another one of my choosing.
So far I have been looking hard at Johnson Bank which appears to have very favorable construction loan terms. Other than that, I do not know much about them.
Would a hard money lender be a better route? I plan to be done with construction in 6-8 months max then fold into a mortgage. Once this project is done, I plan to develop other projects as the area I am developing is hot for tourism.
With that said, if any investors are reading this, perhaps we could chat further as I would really like to find a partner to develop more properties for this area.
Any help would be greatly appreciated!
Sadly construction 1 time close are hard to find so you may not have too many options. Most are 2 closings and the majority of 1x close are only doing primary occupancy. You are going to have to call them and get the full terms as some seem to offer one time close but really it is 2 closings.