Are there loans available for investors doing new home construction

[Rod Desinord]

If so where can i find those?!

[John Blackman]

There are!  You have several options.

1) Traditional bank - You will need to talk to a lot of them.  Smaller local banks are more likely to lend to you.  Chase, BoA, and Wachovia will not.  Our team has talked to literally every bank in our county, about 80-90 of them.  From that list we have used 5.  Prepare a package that describes your project in detail.  Lay out the costs and timelines.  Consider hiring a professional to help you make your bank packet.  Once it is ready, give it to 10 banks and tell them all that you are giving it to 9 other banks.  This will get you the best terms, show them you are a pro, and greatly increase your chances of getting a loan.  You will meet a lot of bankers too which is great networking.  You will likely need 20% equity in the deal and good credit.  If you don't have those, get a partner that does.

2) Hard money - This is going to be more expensive, but there are plenty out there who will loan to a new builder if you bring enough equity to the deal.  These guys win when you default, so you had better be sure you can get it done on time.  These loans make sense when time is critical and you are confident you can deliver on schedule.  I would stay away from them on your first few deals.  Any Real Estate meetup is going to have a few hard money lenders present.

3) Private loan / Partner - Bring a partner into the deal that can finance it.  Here the options are what ever you negotiate.

If you are going to be doing new construction in the long term, you will want to develop #1 for sure.  #2 and #3 are also very useful and make sense for the right project.