Self Storage Development Project with Entitlements - How to get 50k for construction?

[James P.]

Self Storage. Looking for advice on how to get 50k for the initial construction of phase 1. The project has already been granted zoning, use-case and permits for phase 1. Property is already owned, with significant equity. Not looking to refinance, and not looking to use personal income verification. 

[Henry Clark]

@Joe S. thanks for shoot out

OP

1.  What is market value of property?  Example $400,000 no debt.

2.  Why $50,000?  That gets you no where.  An erected unit costs about $4,100.  

3.  How do you plan to finance?  Bank with a 25% downpayment?  Doing a straight cash deal won’t work.

4.  If your land appraises at $400,000 and your bank will use that as collateral you can do a $1.6mm deal.  But most banks will require you to have experience.  So set this up n phases so they can vote smaller chunks.  Phase 1/2/3 each for $400,000.  Versus asking for $1.2mm up front.  

OP change the numbers to fit your specific deal.  If you do an SBA loan they require only a 10% downpayment.  Some banks might require a cash portion to your initial investment.