All Forum Posts by: Bennet Sebastian

It’s just easier to have fewer investors for me at this stage. Yes, I could go to my main investor and offer additional equity for guaranteeing the note. Hopefully I done have to do that. 

So I just got turned down for a construction loan from a local community bank for a spec medical office project that I am planning to build. I have the site under contract and all of the numbers work. I have a several limited partners who will be contributing equity into the deal ranging from 10% to 50% of the total equity with me contributing 25%. The reason I got turned down is because the bank wants any equity partner contributing 20% or more of the total equity to personally guarantee the loan which I already know they won’t do. I’m willing to guarantee but my personal financials apparently aren’t strong enough to be the sole guarantor.

The anticipated construction period will be 1 year and then I expect to lease up and exit within a year after that. So the total loan period would be around 2 years.

Any recommendations on where else I could turn for financing (besides hard money). ?

I have a project that I'm looking to do that requires about $500k equity of which I would provide $200k and the other $300k would be raised by a broker. Rather than taking a fee he would like to get a percentage of the deal. Would love to hear from others who have worked with equity raisers and how you structured their compensation. 

Thanks

Is the construction quality, age and other features of your building comparable to the listings you found on Loopnet?  

Pasting link to podcast I recommended earlier...

https://podcasts.apple.com/us/...

Check out Tyler Cauble's podcast:

Originally posted by @Chris Blackburn:

We did these and they were expensive.  I think we spent $65K for the 2 buildings.  Maybe we got the gold versions?

 So this was six awnings total at about $11k each? 

I'm sure you can find several companies in your market that can fabricate and install these. 

i would do something like this over each entry. 

Hey Jonathan, 

This actually sounds very interesting. However, you mentioned you don't have a ton of money or investors. I'm not sure about multifamily but in most commercial the banks look to the leases to determine how much they will loan you.  You won't be able to borrow a whole lot with only 20% occupancy. 

Will the seller carry a note?