Commercial Construction loan

[Michelle Chastain]

I'm looking to get a construction loan to build a 6-plex. My online research is not getting me anywhere and our local banker is asking for 2 years back tax info, loan application, personal financial statement, survey, and proposed size and cost of proposed building. It is a lot of info and I can come up with... I've just heard that commercial loans are easier than home loans and what he's asking for sounds more like a home loan info. PLEASE HELP!! Who do you recommend for a construction loan???

[Michael Gravallese]

@Michelle Chastain If it’s 6 units then it’s a Commerical loan. If you have no track record of developing real estate, then they are probably going to have you personally guarantee the loan with the property and your some sort of personal assets as collateral.

It’s never easy getting small development deals financed. Lots of small developers depend on investors/friends/families or cash out refi other paid off properties to finance new builds. You may want to get a relationship going with a smaller bank in which you can sit down and speak to their small business Commerical lending officer, explain what you are trying to do and have them give you some options. If not this one, they maybe able to help you in the future. Unless you can show them you really don’t need their money for this deal you may have a hard time getting a construction loan.

Good luck