Brand New Investor with a Potential Opportunity - Need Guidance!

[Bo Huang]

Hi!

I feel like I have an interesting "opportunity", but I need some guidance as I am new to real estate and this would be my first "deal". 

My family member owns land in Wills Point, TX where I could build rental properties to cash flow. I want to take down the barn on the land and use the concrete foundation it has to build a triplex on top of it. I've gotten a quote from a contractor and ran the numbers on the BP calculator and the numbers seem attractive (~$100k to build, ~$1,440 monthly cash flow, 18% CoC).

However, as a new investor, I struggle with how I can FIND funding for my project and HOW to structure my financing options with the lenders/investors. I don't think financing through a bank is possible as I do not own the deed to the land and will be contracting the use of land with my family member (like a ground lease?). In the future, I plan on purchasing the land from my family member once I have more capital.

I am going to invest my savings of $20k in this project, but I still need the funding for the rest. I wanted to ask who and where I can present this kind of opportunity to get funding. I have created a Texas LLC and other necessary business setups to get this underway. I just feel lost in the funding part. Any advice would be greatly appreciated!

[Chris Seveney]

@Bo Huang

1. Have you had an engineer confirm the foundation can support your new building?

2. If you don’t own the property unfortunately no lender will give you a loan even with a ground lease for a residential project. You need to own the ground.

Only thing possibly get financed is if you added trailers as those are personal property and can get financing or have people bring their own