Quote from @Van Ngo:
Hi everyone, we are in the process of building a 7 units complex downtown area, San Diego. We are about a month away from getting the permit (2 years now) and we own the land (value at 650K), any guidance on commercial loan would be great. Although we have great income, but nothing to the amount that gonna need for the project. Also anyone has experience with how does getting a builder play in the process of applying? I'm assuming we just need to identify a builder? or do we need a contract?
For a commercial property and getting a loan for it, I would recommend you get financing bids from multiple lenders(at a minimum 5 lenders). You can ask a local mortgage broker to put out a financing search for you.
It's even better you own the land. Since you will be doing construction,consider either a bridge or commercial loan. A bridge loan will give you money usually in phases. The first phase could be money to develop the land surface(horizontal phase), and then the second could be money for the putting up the building. That will give you money to do both land development, if the land needs some work as well as putting up the building.
I will say that you should get financing offers from as many lenders as possible. Get a rate and terms sheet from the before you continue.
Also, it is great you are close to getting your permits. You should also consider getting quotes for everything(engineering, permit fees, cost to build, etc). Now would be a great time to start getting quotes from everyone that will be involved in the construction and at least start gathering a team. You want to be able to start work once you get financing, without the extra delay of finding people that will do the work and getting them under contract.
Good luck to you!
