New Construction Loan for 6 Lots

[Nicole Johnson]

Hi! Any suggestions on the best way to structure this deal with the lowest out of pocket cost?

6 Shovel-Ready Lots in Texas within the same sudivision

Cost per each lot $140k 

Build Cost per each Lot $500k

Total Cost Per Each Lot $640k

ARV per each lot $950k-$1m+

Total cost for 6 lots $840k

Total Build Cost $3,840,000 

Total ARV for 6 lots $6m

Specs:

3k sqft 

4/2/2 

Each lot is already platted and recorded and has it's own address assigned. I am closing in 12 days with one closing under one LLC.

I am considering taking a construction loan for 1-2 lots at a time and land only loans on the remaining lots and continuing that cycle until the project is completed to minimize down payment. 

Are there any bridge funding suggestions? Maybe private lender?

Thank You so much! So blessed and grateful for this opportunity and your help. Best wishes to everyone in the businesses and in life. 

[Alex Hunt]

There are many ways to go about securing the remaining plots and build funds. Purchasing the 1st lot is smart as that will allow you to get more LTV/LTC on that specific build. You could also bundle the remaining lot purchase and build cost together, this maybe higher downpayment from you but atleast funding for the entire project would be secured, interest applied only on funds drawn.

A lesser down payment option would be, to use the land loan then refinance that into a construction loan as again owning the land will allow you get more LTV/LTC then including the land purchase in the construction loan. Then keep doing them in small batches, this will take more time and will be more closings ( more points in most cases)

If you want to learn more or check pricing on this, send me or the business page a message.