Best financing avenue

[Lou Siri]

Hi everyone!

I've been listening to BP for a while now but this is my first forum post. I would like thoughts on how to finance (we would need approx. 200k) building a duplex (a barniminium with half storage half and 2 -2 bedroom apartments). Rental property is in high demand and each unit should rent for approx. $950 low $1100 high in our area....

Here is where we are: We own our own home that does have equity (not enough to finance all of our project). We own the property that the duplex will be built on (outright) value 50k. We own a small cottage (outright) value is 100k. We own a commercial building (outright) value 200k that my fitness training business is in. 

We have good credit and obviously several assets but just not sure the best route to put it together to get this built... Thanks for any input in advance! 

[Rod Auletta]

Hi Lou, more than likely you would go with a short term construction (bridge) loan using the land as equity in the loan and then refinance to a longer term commercial mortgage upon completion using the ARV as collateral. Good credit in this scenario definitely helps as does the other assets.