DSCR loan to develop an RCFE (Residential Care Facility for the Elderly)

[Paul Magda]

Hello,

I have a 0.5 acre parcel of bare land that I am currently looking to develop. All paid off, no loan on the land and its located in Roseville CA.

I plan on developing a RCFE home where I can run the business..I am currently in the research stage on how I can fund this development with little/no money out of pocket.

Are DSCR loans even available for new builds/developments like this? If so how are the limits calculated? An RCFE is a very profitable business and can produce some great cashflow. Will this effect the limits?

OR

Are there better loan options/products available for this?

Any input will be greatly appreciated. 

[Chris Seveney]

Quote from @Paul Magda:

Hello,

I have a 0.5 acre parcel of bare land that I am currently looking to develop. All paid off, no loan on the land and its located in Roseville CA.

I plan on developing a RCFE home where I can run the business..I am currently in the research stage on how I can fund this development with little/no money out of pocket.

Are DSCR loans even available for new builds/developments like this? If so how are the limits calculated? An RCFE is a very profitable business and can produce some great cashflow. Will this effect the limits?

OR

Are there better loan options/products available for this?

Any input will be greatly appreciated. 

Typically DSCR loans do not cover the construction period, you would need a construction loan first to build the property. Once complete and operational, then a review of financing could be a DSCR. RCFE financing I thought was a special type of financing as they will look deep into the operator of these facilities due to the risk involved. Sorry could not answer the last part but first start with a construction loan to build it.