Lender BAILED out, Need help and/or advice
Good evening,
So I just ran into an issue. I bought a vacant lot and had the ball rolling with everything that needed to be done to do a new constrcution, permits approved last week which the company that was financing the build was waiting to start issuing the funds. At last minute, they pulled out and left me stranded and they said that the main reason was because of Covid19. Unfortunately, they are in South Dakota and they don't see the moving parts and how real estate hasn't slowed down. All the big companies keep buying more vacant land and building more, one company is scheduled to build 3500 doors and that's not including the other 4 big companies down here.
I have been searching for a new lender that will be willing to fund my new construction. Does anyone have any suggestions?
Most Popular Reply
Institutional niche lending ranges between dead and dying at the moment. It'll come back over the course of the next few years.
In the meantime, "traditional" hard money is coming back. Think 65% or 70% LTV, think 12%, think 3 points. I never did that and am not going to start, but someone out there will do it...