All Forum Posts by: Christina L.

Does anyone know of a good construction lender who will lend on spec home construction in Arizona? I've talked to some local banks who do and their rates are anywhere from 4.75% - 6.75% with 1 point, and they will cover around 70% - 75% of total costs. I've also talked with hard money lenders whose rates are between 10% - 14% with 2 or 2.5 points, but they will cover more like 85% and sometimes 90% of total costs. I'm looking more toward the hard money lenders. Would appreciate recommendations.

@Cody L. I have meetings all morning but I'll PM you later today.

@David HamiltonGreat post! I am working to secure my first commercial loan on a large multifamily deal now. It's been a "baptism by fire" experience but I've learned way more by actually doing it than just by reading alone. 

@Ben Tilbury we're still in escrow and had to request an extension on the COE. Reason being, we had a lender ready to go at a rate of 3.9% but they backed out after they realized the properties are non contiguous. This 55 unit deal is spread across four properties that are very close to each other on the same street, but not all are contiguous. Several other banks declined to quote for the same reason. This has been a learning experience for me. We ended up finding others that are fine with the properties being non contiguous and right now we're working with a bank who likes the deal and quoted a rate of 4.02%. 

My partners and I own a 13 unit in Tucson that just so happens to be next to one of the four properties we're buying. We're currently in the process of repositioning it and as soon as units become available, we fill them very quickly. The 55 deal we are buying has been owed by the same owner for 25 years, they have excellent records and great trailing data. It's also 100% occupied with some room to push rents so based on all the factors we decided to buy it. I should mention that these are definitely C class properties in a C class area.

As for the rest of Tucson, I'm slowly familiarizing myself with the market so I don't have much insight for you at this point. However, if you research the Tucson economic forecast, it looks good from what I'm finding.  

@Kristie Eddy thanks for the recommendation! It's a 55 unit deal and it looks like I may have the loan lined up now but I will definitely add Dan to my list of lenders. Appreciate it.

@Brian Adams thank you! Glad I asked.

@Joseph Gozlan @Account Closed

HUD has great terms but sounds like their loans come with a lot of "red tape". Anyway, thanks for your responses. Very helpful to get input from those who know a bit about their program.

I'm doing some research on multifamily lenders and I learned that HUD offers loans at rates in the 3.5% - 4.4% range for 30 years with a 40 year amortization schedule. Other than the fact that it can take months for them to process a loan, if you have the time to wait, anyone aware if there are any other drawbacks to HUD loans on stabilized MF assets?

@Chris Brown thanks for that input 

@Ari T. No it doesn't have to be. I'm already looking into a few other lenders but was told that I may want to also look into local Tucson banks since they may end up providing the most competitive quotes. Since I didn't know of any, I posted the question here.