All Forum Posts by: Account Closed

I'm familiar with Modular construction, I'm just trying to make sure you're not actually negotiating on a mobile or manufactured home.

My suggestion probably stands in either case. Extend escrow and pay out of pocket to get this foundation built so it can appraise.

Why not negotiate a long enough escrow to get the permanent foundation built and pay for it yourself? Sounds like the cushion is worth it.

I'm curious about this frame though. Does the frame have axles? If so it's a mobile home, different from Modular.

You can customize as much as you want, you'll just pay for it. These were built for $150/sf at the factory. Total finished cost was $220/sf

Here's the story

I did something similar. I called it the BBRR strategy. Buy, Build, Rent, Refinance. 

Private lenders will vary on their terms. You could potentially negotiate an interest reserve into the loan where all the payments would be added to the loan and you'd pay the whole thing off at once with the permanent loan. 

Good luck.

You're likely talking about a couple different loans. Commercial permanent loans don't typically exist with 30 year terms as far as I know. The permanent loan isn't really your challenge though as once the project is built the lenders probably won't care about how it was built. 

The construction loan is where you're going to find challenges. I don't know of any specific banks offering loans for modular product. You need to just start talking to banks. On the modular development I completed a few years ago I had 5 banks drop out after receiving letters of intent because of their unfamiliarity with modular construction. The bank that finally came through was a local bank that believed in what we were doing and our team. We have extensive modular experience and I think that gave them comfort. 

@Justin R. thanks for your insight. It'll be interesting to see how this plays out on an 18 unit. I might have to go the extra equipment route.

To be clear you're not going to occupy the property, correct? 

How are you taking title? Tenants in Common, Joint Tenants, Self, LLC, Corporation?

Talk to another lender. You may as well shop it to several.

@Account Closed, Net Metering Aggregation. Thank you. Knowing the correct term is exactly what I needed. My googling failed me looking for it. 

@Michael D. yes, in San Diego.

Thanks for your insight. I'm looking into this for a new development and need to figure out how to wire for the submeter and how to charge the tenants.