Updated almost 3 years ago on . Most recent reply
Multifamily Construction Loan
I have a piece of land with a small wood house that I am looking to demolish and build two townhomes on. I have not had plans drawn up yet but some basic ideas from local builders are 2 homes @1700 sq feet each. Build cost $200-$250sq ft. I owe $232,000 on it and expect roughly $700,000 to build. ARV after completed should be approx $1,600,000. I am a little cash poor at the moment as I have another house under renovation after a flood. I am looking for financing so I can put down as little as possible so I don't have to sell another house for capital and pay crazy taxes on it. I prefer to find a way to finance and build now and refinance once completed.
Most Popular Reply
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
- 9,556
- Votes |
- 9,243
- Posts
@Colin Higgins, the 1031 reverse construction exchange would not work for @Rachelle Bisaillon in this instance because she already owns the property. In a reverse construction exchange the QI for the 1031 takes title to the new property and holds it for up to 180 days (another reason why full construction is tough to make work) while construction is done. Then the exchanger takes title
- Dave Foster
