Creative Financing for Construction Loan on Build & Sell Investment Property

[Tamara Aglaure]

Hi All,

Before my husband and I pull the trigger on a hard money loan I wanted to know if anyone has other financing ideas for our construction project. We have HOA-approved plans and are ready to go with a great builder and we own the lot outright (worth $1.5M). We have a decent amount of equity ($1M+) in other investment properties but have maxed out our DTI on them so we cannot go the traditional route. To cover payments on the loan we are willing to sell one of our other investment properties but would prefer not to as the one we are considering nets $2K/month in rent.

Here are the details:

1. We own the lot worth $1.5M

2. The construction costs are $2.2M

3. Finished value of home: $6.5M

4. We have excellent credit and experience building and flipping homes

Hoping someone out there has a brilliant idea on how to finance this.

Thank you!