Options for financing multiple units (4) on multiple parcels (6)

[Brenden M.]

Hi everyone. Currently looking at a property for a STR investment in North Carolina. The subject property is 4 standalone buildings spread across 6 different parcels of land (3 parcels contain the 4 buildings, and the other 3 parcels contain surrounding land). I have spoken with multiple lenders offering DSCR/cash flow loans, only to be told that they cannot help me as soon as I mention it is technically the sale of 6 different parcels - their reason primarily being either that they can't bundle the underwriting of multiple parcels into one loan.

Any ideas for what could be my best approach to finance this? Would finding a hard-money lender to get into the deal and then refinancing out to a DSCR product (maybe some type of portfolio loan) be a viable solution? Or am I likely to run into that same issue when trying to refinance into a new loan? I am targeting something that will get me to 80% LTV min, but I will not be able to qualify using DTI, so looking for something I can qualify for with the asset alone.

Thanks for any ideas. 

[Caroline Gerardo]

Today you cannot mix and match up product ins and outs, so no you can't refinance either. I doubt there will be such a product in the future. Few to no lenders even Non QM loan on land.

You are asking to cross collateralize raw lots with units.

You can do seperate DSCR loans on 1 2 3 or 4 units on one parcel but NOT on raw land. It sounds like you have three loans and then you have land which is very difficult to get a hard money loan on raw land. Land does not have much investment value and takes years to develop. The risk on land for a hard money lender is to get back something that takes two years+ to dump.

"Buildings" by this you mean units that are inhabitable, right?

To get a hard money lender interested you demonstrate your exit strategy to sell in less than 10 months or prove you can refinance out- this you cannot do with land.