Investment Property (4 unit) Line of Credit/Hard Money: ADU Build
Hello All, I am looking to build a 2 story ADU, 1,200 SF total in Los Angeles. Need to borrow $250k for construction of the ADU. Any recommendations for hard money lenders that will provide a loan for a 4 unit property for 4-5+ years, if possible. Any recommendations, would be greatly be appreciated. I am also looking at possibly getting a credit line for this 4 unit property if available.
Thank you and look forward to hearing from
Are you aware that recent lending rule changes (forget if it was Fannie or Freddie) duplex and triplex to add an ADU and still be eligible, but the recent rule change does not allow a quad to have an ADU added and get F/F financing. I suggest you discuss this with your lending expert prior to proceeding. Adding an ADU to a quad will greatly impact finance options that likely will adversely affect the value.
Good luck
@Dan Heuschele is correct. You should do so more research.
#1 Market Trends & Data Contributor
It's basically FM 203k rehab loan. Many lenders is utilizing this program for ADU,including in LA. I think key point in the project is the project has to be executed by a licensed GC and funds will be allocated for every timeline that has passed.
There's no way 4+1 ADU will be financed by FM.
2+1 or 3+1 is possible. Search FM requirement on 203k.
What are some alternate options for financing this construction? Do you know of any lenders/banks that will do a line of credit for a 4 unit property? Hard money lenders?
Quote from @Carlos Ptriawan:
It's basically FM 203k rehab loan. Many lenders is utilizing this program for ADU,including in LA. I think key point in the project is the project has to be executed by a licensed GC and funds will be allocated for every timeline that has passed.
There's no way 4+1 ADU will be financed by FM.
2+1 or 3+1 is possible. Search FM requirement on 203k.
#1 Market Trends & Data Contributor
Quote from @Rafael Go:
What are some alternate options for financing this construction? Do you know of any lenders/banks that will do a line of credit for a 4 unit property? Hard money lenders?
Quote from @Carlos Ptriawan:
It's basically FM 203k rehab loan. Many lenders is utilizing this program for ADU,including in LA. I think key point in the project is the project has to be executed by a licensed GC and funds will be allocated for every timeline that has passed.
There's no way 4+1 ADU will be financed by FM.
2+1 or 3+1 is possible. Search FM requirement on 203k.
Like I said, anyone that offer 203k can work with you. I give you one name : Loan Depot, there're few other as well.
No need for hard money lender as this project can be absorbed by FM.