Commercial loan that exceeds net worth

[Noah Zelko]

Hello,

This is my first post on this forum and was looking for advice from fellow investors/developers.

A little background on me. I am 20 years old and have been in real estate for about 5 years now. When I started I bought a cheap single family house after the market crash and fixed it up to rent out. Then I refinanced it to do another and rent that one out. I acquired 6 single family properties from doing this. Last year since the market went up I decided to sell off 4 of them and start in my first house development. The house is just about finished and getting lots of action on the market. I believe developing is my passion.

Now for my question I was looking for help/advice on. I want to develop apartment complexes to have cash flow. There is this piece of land in a good area that I could build six 8 units on. I was wondering if it was possible to put 20% down on land build the first 8 unit with cash then refi it to build another and keep that domino effect going to build the rest. Does anyone have experience with this? Or is there a better idea to finance this?

I have high credit, good income, but not enough net worth to acquire a loan the size to build all six 8 units at once. My net worth is about $650K.

Thank you spending your time to read my post!

[Bjorn Ahlblad]

@Noah Zelko Welcome to BP. So you are 20 years old. Real estate for 5 years. Bought and flipped houses. Sold several at the peak and you have accumulated enough cash to put down on land and enough to develop the first of several 8 unit MF!  Oh yeah great credit and NW of 650k. And you want some guidance from us? Wow I am speechless and can't wait for the thread to get going!