Two New Construction Fourplexes - Satisfy Lender Experience Req.
I am a first time investor, but a seasoned construction management professional. I have worked for ~10 years as a project manager on a wide variety of construction (institutional, hospital, hotels, student housing, commercial and multifamily).
I am under contract on some land with a 90 day contingency/feasibility period, during which time I am rezoning a small parcel of land, completing architectural plans, acquiring building permits and securing financing. I plan to build two fourplexes (8 apartments total) and rent both short term and long term. After construction, I will refinance and hold long term. I plan to purchase in an LLC and manage construction activities myself.
I am having a hard time finding suitable financing. Most lenders I have spoken with will not utilize my professional experience (as a construction project manager) to satisfy the past performance requirement (typically 2-3 projects in the last 3 years), and are not able to assist due to past performance. The project pro-forma is great, and many said they are able to finance if I can get a partner to co-sign or join my LLC.
I have seen suggestions to JV with a builder for solely the construction period (to check the box on past experience), and utilize that builder for construction. I have also seen suggestions on finding another partner to let in on the deal, which is not my desired solution.
Is anyone able to lend some advice, or experience, on what the best way to meet the past experience requirement for lenders is for a first time investor?
#fourplex #multifamily #new construction #BRRRR