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Updated almost 8 years ago on . Most recent reply

User Stats

34
Posts
21
Votes
William Hiday
  • Rental Property Investor
  • Seymour, IN
21
Votes |
34
Posts

Best bet to secure financing for a new build rentals?

William Hiday
  • Rental Property Investor
  • Seymour, IN
Posted

I know it's been discussed at length, but I'm looking for more insight with regards to the business model that I'm considering.  Here's the set up and the items that I think I have checked off:

1- I've made my living as a custom home builder for the last decade, so I'm confident that I can build townhouses/duplexes on infill lots.  I already have my list of subs and suppliers that I've dealt with for years, so the construction piece is taken care of.  Heck, that's the easy part.

2- I'm in central Indiana, so there's an abundance of affordable infill lots that I can get my hands on.

3- I have a few sets of building plans that I've put budgets together for, so I know what my build costs are versus what I can get in monthly rent.  The margins are there and they actually look really good.

4- I have the property management piece covered as I've owned and managed several rentals in the past.

5- I have an LLC set up that is almost a decade old. I have accounts with my suppliers and access to small lines of credit with the local savings and loan.

All of this sounds good, right?  Here's what I'm struggling with:  The banks might let me do one or two of these , but that's not going to get me to where I want to be with this model.  What's my best bet for securing the financing to a) do the builds and b) hold on to them long term?  

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