Advice on Financing For First Deal

[Sam G.]

Bottom line up front, I bought an acre in an urban setting. I re-zoned the property successfully, have full construction drawings and are nearing permit for 8 apartment units. I bought the land for $250k ($100k down and $150k owner finance). I've owned the land for over a year. The property is owned in an LLC. An adjacent similarly sized property is currently for sale for $350k.

I am going to need financing to pay down the remainder of the owner finance and fund construction, around a total of $800k combined. Many lenders don’t want to discuss fully until I have a building permit. 

This is my first investment, which I realize may be difficult to get financed. I’ve heard from some lenders that I need more equity, others said there was a “cooling period” required after purchase to be able to use additional gained equity in land (from rezoning), and others needed prior experience. Another said if my builder co-signed on the loan it wouldn’t be a problem. 

I am looking for suggestions on what may make this easier for a first time investor, funding suggestions, or other tactics. I’d prefer to not approach a builder to co-sign on the loan (which I don’t see happening), and I’d also prefer to not inject too much more equity into the deal if I don’t have to. 

Thoughts I have lately that seem tough to find info on:

1) asking owner financing to “subordinate their equity” to me, to utilize all land equity