All Forum Posts by: Devin McIntosh

How many units are you looking to build? Also, do you have previous ground-up construction (GUC) experience? This will be important for getting you qualified with a GUC lender. 

Here is what we have done with our clients in this situation, there are a few ways to go about it.

Buying the land 1st will increase LTV/ LTC, but the land purchase can be included in the loan. Land + build cost. On that same option, an all in 1 maybe offered( means refinance included) but that would be based on long term rents.

Another option is to get the construction funds, land + build cost and execute the build and refinance under our DSCR short term rental program, this would be 2 closings versus 1 but would allow you to use the rents of the STR if the LTR didn't cover the DSCR

@Devin McIntosh Do you have experience with ground up construction? Typically you need 3+ deals in 36 months or to partner with a GC who can help you meet this qualification. You'd need to purchase the land on your own (through whatever financing you deem best) and then you can get a construction loan that is both horizontal and vertical to cover the build and reimburse the land purchase. I'm happy to talk more if you'd like. Reach out.

With a commercial loan, business plan and projections, this could be possible.

If you bought the land for cash then did what @Andrew Steffens said I think you could do some kind of business loan or maybe and SBA loan.

You could sell it as more of a resort or STR community vs single STRs.

What I would be concerned about is the single tax lot with multiple homes. Can you subdivide the lot to accommodate separation of the homes?

By keeping them all on one lot, you would have to sell the place as a single property IE: as a resort. Different market and usually a much longer time to sell. That would be for both you and the lender if they needed to foreclose and sell.