|Posted by: JR Nov 11 2003, 08:14 PM
|I am looking to get construction loan financing for building a 2unit condex. One unit would be sold off as a condo. and the other unit would be owner-occupied by me. I will be the General Contractor, but have no formal licensing or experience. Any suggestions as to lenders who would be willing to work with me? Please reply to :
|Posted by: Lee Nov 11 2003, 10:46 PM
|have you acquired the land?
How much cash or equity do you have?
Without any experience in this type of project, it will be near impossible to get ADC (Acquisition, development and construction) financing from a conventional or any lender. However! If you have enough cash or equity down, say 35-50%, it will be much easier and quicker to obtain your funds through a hard money lender. But please know that it is much more expensive to go this route.
|Posted by: loanuniverse Nov 12 2003, 09:04 AM
I agree with Lee, getting financing for this scenario would be too difficult. The biggest problem that I see is your lack of experience and licensing. In my opinion, the only way that this would work is if you are willing to bring in a licensed general contractor to run the project, this would bring comfort to the construction loan lender. Of course, this would increase your costs dramatically, but I see no other way.
On the other hand, you could try a non-conventional lender. I am not too familiar with these lenders, but even then I would still think that they would want some kind of assurance that the work was proceeding accordingly and up to code. Since they are usually more interested in collateral, it would not pay for them to fund the construction of a building that might never get a certificate of occupancy. Also as mentioned, their costs will be usually higher.
|Posted by: JR Nov 13 2003, 05:03 PM
|I was able to find a service called Build Max. They work as an “advisor” to owner/builders, which in turn, makes their lenders willing to work with the owner/builder, b/c they view it as a less risky endeavor. Of course, they charge a fee for the services, but no where near any costs incurred from a GC.
We’ll see how it goes…