All Forum Posts by: Derek Bell

@Jim Flynn total cost of the project is 2.7. 

Have the grading permit pulled and about to have the building permit. It’s a spec build and normally, especially with the bank I used before, I had no problem doing spec to get a construction loan. Now some lenders are wanting a lease in place before I build. For sure not as easy as it used to be. 

Don’t do this. Probably the worst idea ever. But good way to start thinking outside the box. 

I do not have the building marketed yet for lease. I just am now finishing up on the permits. I did put in the plans to be able to put in a demising wall to split up the building into 2 10k units. I did this because if I had trouble renting out the 20k sf space, I could put in the wall and get two tenants. 

And yes, I already own the land. I dont feel like it will be a problem getting a construction loan. It’s just a matter of picking the bank w the best terms. 

 @Ronald Rohde I sent you the property that I am looking at selling via DM. I can keep this property for a while and it will cash flow a little. I need to get out of the construction loan and into a permanent loan. The 2.1 mil loan on this property will mature in December. Should I just get a permanent loan asap once it matures or do a cash refi?

I am a dev/builder. I have a commercial flex I just finished. It’s 100% leased up and my tenants move in in a few weeks after I can secure the U&O. It’s a nnn lease with 5 year terms. Currently will be bringing in 224k annually with 3% increases every year. I have thought about trying to sell at a 5 cap but I dont think it will bring that unless its from a 1031 buyer. I sold another property right across the street at 6 cap so I think the 5 cap will be tough, especially in these times. I have a 2.1 mil loan on the property that will be maturing in two months out of the construction loan. I am doing another project in a few months that will need about 700k in cash for which I have, but maybe doing a cash out refi on the property about to get out of the construction loan would be a better fit?

 Should I just secure the note to a permanent loan, do a cash out refi and put the cash into the other project, sell and move on??

I am a developer/builder. I am doing a spec 20k sf warehouse in Nashville. The bank that I have used for many years has stopped doing all construction loans. Told me that their construction bucket is full.  Kind of a bummer since they ordered an appraisal that has already been completed. Now I am stuck without a loan, an appraisal that may not be accepted by another lender, and I am about to get full building permit and finished with grading permit. I am wondering if anyone else is experiencing this problem. 

I love how banks say its all about the relationship, but then leave you when you really need them. 

maybe I am missing something in your posts, but why didn’t you just parcel the big lot into two, sell one, and keep the other to build on? It would help give you a little bit of cash. And that’s what you need….cash. And bringing in partners never solves this problem in my opinion. Just muddies the water. What you do have is guts and a hell a lot of ambition. 

I would have to make sure the units are compatible. If so, I’d come pick up in person. If I am 100% certain they would work, I can extend an offer. 

No, but I have called around to a ton of suppliers and so far no luck.