Multifamily Groundup Construction loan

[Sri R.]

We are a team who are venturing in to constructing a multifamily unit from groundup.

We don't have any prior experience in construction and are looking for financing loan options. Does any one have any leads on lenders who provide loan for groundup constructions and the criteria? What are other options do we have if we don't have piror experience? 

[Jason Sandusky]

Financing a Multifamily (5+ units) project for a 0 experience borrower will be just about impossible to find.  It is extremely hard to find programs for 0 experience simply on the 1-4 unit side of ground up construction.  The requirement to do this generally involves an experienced GC signing on the borrowing entity as a 20+% owner thus making them a signatory on the loan and responsible for the debt which in most cases is not very easy to find. If this isn't required, then most likely having the GC sign a completion guarantee to ensure the project gets finished and lender is not stuck with a partially complete asset is the case.  I would first attempt a 2-4 unit to get the experience under your belt. Also make sure to build on a property located in a desirable location with larger pop density and if holding for rentals, charge median rent for that market as lenders want to see a bigger pool of buyers/renters available to occupy/sell.  I have a program nationwide that does NOT require GC to sign anything, only provide proof of 3 C/O's (certificate of occupancy) over the last year I.e. built received occupancy permission now unit is on market or habitable.  700+ FICO I can get you 80%LTC loan to cost on the project on ground up construction for 1-4 units.  Please feel free to reach out for discussion.