All Forum Posts by: Chad Edwardson
Chad Edwardson has started 4 posts and replied 12 times.
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Quote from @Nick Belsky:
Are you working with a mortgage broker on this? You simply need the right lending resources. Rural does add a layer of difficulty but many lenders will not be concerned based on your experience, comps, and the overall numbers. If your other experience is also in the same market, that is a compensating factor as well.
Would be happy to dig into this with you to see what resources we have that may be able to help.
Cheers!
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Quote from @Erik Estrada:
Quote from @Chad Edwardson:
Quote from @Zach Edelman:
How rural are we talking? Where is the property? There may be a path forward here depending on the answers here, especially since you have new construction experience.
Do you have 12 months of short term rental history? Or any other STRs in the area with 12 months of history?
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Yes, three properties
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Quote from @Zach Edelman:
How rural are we talking? Where is the property? There may be a path forward here depending on the answers here, especially since you have new construction experience.
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Quote from @Jaypee Pau:
That’s awesome you’ve already built two STRs sounds like you’ve got a great system going. Rural construction loans are definitely trickier. I ran into something similar and eventually found that smaller local banks or credit unions were way more open to rural builds than the big lenders.
Also worth checking if any lenders specialize in land + build packages in your state. Some niche lenders fly under the radar but are actually super flexible with rural or STR-type properties. Once it's built, your DSCR plan sounds solid. Good luck hope this one gets off the ground soon too.
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Quote from @Chris Seveney:
Quote from @Chad Edwardson:
i have built two STR properties since 2021 and have a third one permitted and ready to build. I own the land outright and can build the property for 225k. I'm running into the fact that the property is classified as rural so none of the lenders I have spoken to will touch a rural new construction. The exit plan is to hold in a DSCR loan. Any insight would be appreciated.
yes, I’m really looking forward new construction financing in rural.
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Post: Need financing for Rural New Construction of a STR
- Posts 12
- Votes 8
Quote from @Patrick Roberts:
It's not just new construction - a lot of lenders wont do DSCR loans on rural properties, either. Make sure you can find permanent/take-out financing before beginning work, because even if you find a construction loan, you may not be able to refi out of it.
Thank you. I have found that to be difficult as well. I have found some DSCR options for rural.
Post: North Georgia STR build and hold investor
- Posts 12
- Votes 8
Hello, BP community
I have been a long time listener to the BP podcasts, some of my favorites. My focus is self build/PM new construction properties for STR investments. I have built two successful properties for myself to date and I'm starting to build for other investors. We also self manage our three STRs plus one for another investor.
Looking forward to the knowledge bank of this group.
Thanks
Chad
Post: New Construction STR Treehouse
- Posts 12
- Votes 8
Investment Info:
Single-family residence buy & hold investment in Aberdeen.
Purchase price: $150,000
Cash invested: $150,000
1/1 STR Treehouse Luxury property
