Looking for some direction. I have an opportunity in a strong Southern California beach city. My TD loan partners are interested because of the length of the project (14 months.) Any ideas on where to look for funding for this one? TIA
Build Costs: $900k
ARV: $2.4m total (Two Townhomes at $1.2m each)
If those numbers are accurate, you should not have a hard time finding funding. Look at local banks who have a portfolio division. As far as the length of the project, I don’t see 14 months being too long for local banks.
If you're looking for traditional construction lending from a bank, I agree with @Elyane Davis about calling up community banks in the area. Many are wading back in to construction lending, and almost all banks are looking for ways to put their money to work in loans, especially loans with higher yields and points, such as construction loans. I would search on google for construction loans in your area to see who is advertising. Or just start calling each of their loan departments, and ask if they are actively making constructions loans. I'm sure you'll find one itching for it!
Alternatively, there are many hard money lenders and private money lenders out there that will do it at higher rates.
Good luck on your project Marie!
Join the Largest Real Estate Investing Community
Basic membership is free, forever.