Multifamily ADU Construction Financing Southern California

[Nick Boring]

Hello BP! 

Here is a quick summary, my partner and I are in Southern California and we completed our first ADU project around 6 months ago. The project turned out great and we are looking to start our next one in the next couple of months. The first time around we used a conventional loan to purchase the property and then we used cash to build our two ADUs.

We are looking to take on a bigger project and will be needing a few different loans: Acquisition, Construction, Permanent. I think the best we can do is acquisition and then do some sort of construction to perm loan. In a perfect world we could find a lender that will work with ADUs that can bundle all these loans together to simplify our financing and save on some closing costs.

Here are a few more details. Acquisition will most likely be between $800k and $1Mil. Construction costs will be $600k to $1Mil depending on how big of a project we take on. Permitting time is around 6 months and construction will be 12 months.

Any advice on specific lenders or financing strategies would be appreciated! 

Thank you!