Dscr Loan New Construction

[Mitchell Krotz]

Looking into DSCR loans for a new build that I wish to make an Airbnb.

Besides looking at what Airbnb comps are pulling in, backup would be what long terms are pulling in and average selling cost of what the home will be when finished.. anything else I should be plopping at? Anyone with some background in this? Perhaps thinking of a  modular style home to get it up and running quickly. Any thoughts?! First time looking into this so any references our resources will be appreciated. 

[Robert Ellis]

Quote from @Mitchell Krotz:

Looking into DSCR loans for a new build that I wish to make an Airbnb.

Besides looking at what Airbnb comps are pulling in, backup would be what long terms are pulling in and average selling cost of what the home will be when finished.. anything else I should be plopping at? Anyone with some background in this? Perhaps thinking of a  modular style home to get it up and running quickly. Any thoughts?! First time looking into this so any references our resources will be appreciated. 

I don't think you need modular, and I disagree with the guy below me. What we do with clients who build single family and multifamily is we break the process up into several pieces. Land acquisition, entitlement and zoning, permitting and site plan, construction budgeting, and then at that point, we do the last piece which is cost of financing. That is how developers do the same process. From purchasing land to breaking ground in Columbus is typically 60 days. I sold a piece of land in December in Newark, OH near the intel site that we just finalized their construction budget after pricing all of the finishes, suppliers, etc and now they are turning it in to close on their construction loan within 14 days. All of the equity is coming from the land purchase and there are DSCR loans for ground up multifamily and single family. I'll shoot you a PM to connect further. I wouldn't build modular. There are 400,000 units built for multifamily per year and no one does modular build. you can't change the Floorplans. Just talk to someone with a lot of experience and several builders. We do the whole process and are now expanding to tampa, Orlando, Jacksonville, and Miami for infill lots and building 3 units on a slab.