New Construction Duplexes

[Elandrous Peoples]

I want to build 6 duplex buildings in the city where I live and rent out the units. I have contacted several hard money lenders, and one of their requirements for a construction loan is for me to have completed three deals. How can I obtain financing for my first deal if I must have credibility of doing at least three. What creative options do I have to obtain a loan? 

[Alvin Taveras]

Hello @Elandrous Peoples

Yes getting a construction loan for an investment property has become more difficult. In the commercial space, it's much more difficult because the lender commonly wants to see previous building/management experience. Your best be might be to partner with someone who had the experience that they are looking for. 

Another way around this is to work with a spec builder who is already building/financing the property and just purchasing the property once the property is completed. This way, all you need is the end loan. I don't do much in Alabama (Mostly Florida), but this is what I usually recommend for the majority of my clients. - Let me know if you have any additional questions.