Updated about 11 years ago on . Most recent reply
Austin, TX - Need funds for a brand new house building project
To my very knowledgeable peers out there... My just got accepted on an empty lot and now I need to find some financing. I have checked out a private money lending company like Stallion Funding. They will fund the project 100%, no issues. The owner even suggested that I try conventional loans first, as it has a lower interest rate.
The land cost is $100K and I was told that the building cost will be from $150 - $200K, depending on the size and materials used. This means I do need to borrow at least $300K and then some? Please advise which is the best route to partake, using hard money as a last resort. Or, could it be a combination of both? The option period ends 3/30th and I need to fund by 4/9th. Thanks in advance for your help!!
Most Popular Reply
#4 Off Topic Contributor
- Investor
- Round Rock, TX
So how much of that collateral do you have to pledge for the loan they're proposing? What terms are they offering?
We're starting a new fund for projects like this, but we probably can't help you on this project yet. Streamline Funding and Pride of Austin are other local hard money lenders. Manana Funding is worth talking to as well.
Conventional financing is going to cost you a lot less, but you'll need collateral for that. Do you have cash to fund part of the purchase? If so, these lenders are all loaning on specs:
-RBank (my favorite)
-SouthStar Bank
-CNB
-Affiliated Bank
-Trust Texas Bank
-Grand Bank of Texas
Others like:
-Prosperity Bank
-Plains Capital
-Southside Bank
and about 5-10 others are doing specs too. The typical hard money loan is likely to be around 13/3 for construction projects. Seattle Funding Group is as low as 10-12/2 from what I am told. Other national hard money lenders are less expensive still, but they may require more experience than you have.
Posters really need more detail to help you more, What experience do you have? Are you liquid enough to service the loan? Do you have good credit? What experience does your builder have? What are you planning on putting up as collateral in the project?