100 unit Condo Project Financing
|Posted by: Champ Jun 17 2004, 10:45 PM
|I need financing for this project, and need to know where to go to get lender criteria/guidelines for this kind of construction loan. The units will all be sold and the loan paid back within 1 year of completion (estimated of course)
I have a plan, models to go by including blueprints, all sale data etc.
I also will need to raise the 20-25% portion not financed through a lender from VC’s, how do I do this and where do I get info.
email me if you want at firstname.lastname@example.org
|Posted by: loanuniverse Jun 18 2004, 09:34 PM
After reading your post, I considered writing something like ”if you have to ask, then you probably can’t get this type of loan” But I am going to refrain from these, and give you some feedback solely on the questions you posed.
Here are the guidelines that you will face at most lenders:
1- You need to be experienced. You won’t even be considered without experience.
2- You need to show up with your funding lined up.
3- Saying that the units will be sold within a year will not fly. Think presales with deposit.
4- Who is your General Contractor? Who is your architect? Think experience
5- You mention plan, models, blueprints and sales data, yet I did not see the most important thing ”location, location, location”
Hmmm, I think those are good to start….
Now regarding ” 20-25% portion not financed through a lender from VC’s, how do I do this and where do I get info” I think that the best idea would be to get an experienced partner. I just don’t see what would be the benefit for the other person to partner with you if you don’t bring in money or expertise. Now if you own the land already, that would be something.
I hope this did not sound too rough, but just trying to be honest here.
|Posted by: The Fox Jun 22 2004, 02:48 PM
|Just a couple of comments to add, from the perspective of our market.
With a project this size, the lender is going to expect you come in with considerable experience and/or connections.
I don’t know if you are looking for traditional venture capital or hard money investors, but traditional VC would probably be difficult to get unless this is a big-time, home run type investment.
As for your question directly, you should find investors (you, family, friends, your connections, and area hospitality groups, come to mind) to commit to the 25% you’ll need down. Bring your information in to commercial lenders and see if any of them will bite. If there is some interest, the banks may be looking for a good amount down and/or considerable amount of pre-sales.
Best of luck in your project. Let us know what happens.