All Forum Posts by: Felicia Richardson

We can go up to 50% LTV as a private lender for what it's worth. I would be amazed, shocked even, if a traditional financial institution was willing to lend on a non-habitable asset up to 80%.

@Felicia Richardson I can assure you those lenders will not lend 80% LTC on unimproved land. I suspect you spoke to bank employees who weren’t in their commercial lending division and didn’t understand your borrowing request. Leverage will be based on whether the land is entitled and borrower track record but 50-60% is the norm, not 80%. Perhaps slightly higher from an alternative lender but definitely not from a credit union and expect much higher fees.

20% down is terrific on land.

It's a non income producing asset which has increased volatility, typically I see 65 LTV max on land as of late.

That would be a foundation issue to make sure the current foundation is able to hold two more floors on top and also a height issue for the town for the area. How tall is the commercial building or the other ones nearby? If they aren't taller than two floors, you might not be able to go up.

Felicia,

Look first to see if there are other quads in the area, as your only zoned now for three units, so at minimum, you could probably make this a triplex in lieu of duplex. 
Will need to know density, parking requirements, can the building withstand building on top, lot size, future planning etc…. depending on how well the zoning and platting dept plays with others! It’s worth a look see, just do your homework up front before hiring the other professionals to make this happen.

Good luck

It's possible, but not always practical. First, there is zoning and if it's allowable. Then there is city approval and whether they want a 2 to be a 4 (seems like the nearby properties might support it). There is also parking per unit and impervious cover that could be an issue. There are a lot of other issues, but for you as the owner, the main one is usually do you have to have the current tenants out to build (no income) on to the existing property or are you going to do a knockdown new build?

No problem @Felicia Richardson, if jose isn't able to I have a couple of other contacts I can share that aren't on BP.  I will shoot you a PM.

Hey @Felicia Richardson - I can not speak directly to Atlanta, but we do a ton of Fannie May Homestyle renovation loans up here in Chicago.  I think the product is absolutely amazing for investors!

Our go to lender to @Jose Valdovinos with Cross Country Mortgage...I am almost certain that they can do loans in the ATL, but hose can confirm.  I love Cross Country specifically because they can service their own loans meaning that they handle all the construction draws and payment processing.

Plus, I like Homestyle over 203k because they don't have as strict of guidelines on what has to be renovated.