Looking for a Hard/Private Money Construction Loan in TN...

[Paul Wallace]

Looking for a hard/private money loan for a construction project in Knoxville, TN. Did a loan just like this in 2005 with a regional bank. 80% LTV based on a $700,000 appraisal of the home plans. Interest only payments during construction...super simple and easy. I know banks/lenders have changed drastically since 2008, that's why I am hoping a hard/private money lender will jump all over this deal.

Here is a recap of what I am wanting to do:

House Build Price-$746,000

Land Price-$244,000

Total construction cost-$990,000

Construction Loan Amount Requested-$950,000

Conservative appraised value of home-$1,350,000

Paid on land so far-$33,000

Equity in rental condo-$25,000

Cash in an annuity/401k-$145,800

Equity in commercial building-$175,000

I will be acting as the contractor on home and that is where I am getting the difference from the total construction cost to the appraised value of home. Trying to use the equity that I will have in home as most of my down payment money. I can build home within a 12 month timeframe and save all of the costs associated with using a builder. I have built my last two homes personally and grew up building with my father. I just finished building-out my new office space and was the contractor for that build-out. I also built out a second space in my building and came in on budget and on time on both projects.

I have a legally drawn up lease/purchase agreement in place on the property (Lot 6, Fallen Oaks Drive, Knoxville, TN) and have already paid seller of property $33,000 so far. The 5 acre lot is located in the Hardin Valley area of Knoxville, TN.

I have an llc established, "Wallace Family Properties of TN, LLC". I would like to structure the loan through the llc as non-owner occupied during construction.

Look forward to some positive responses...thanks for looking.

Paul Wallace

Wallace Family Properties of TN, LLC

Contact me at:

[email protected]