All Forum Posts by: Sam G.

 Clayton, I will message you. Thanks for the insight!

I am developing an 8 Unit Apartment Complex in Texas. In a perfect world, I would get a non-recourse construction loan, one-time close to permanent financing. Does this product exist? The LLC already owns the land and has for multiple years.

Bottom line up front, I bought an acre in an urban setting. I re-zoned the property successfully, have full construction drawings and are nearing permit for 8 apartment units. I bought the land for $250k ($100k down and $150k owner finance). I've owned the land for over a year. The property is owned in an LLC. An adjacent similarly sized property is currently for sale for $350k.

I am going to need financing to pay down the remainder of the owner finance and fund construction, around a total of $800k combined. Many lenders don’t want to discuss fully until I have a building permit. 

This is my first investment, which I realize may be difficult to get financed. I’ve heard from some lenders that I need more equity, others said there was a “cooling period” required after purchase to be able to use additional gained equity in land (from rezoning), and others needed prior experience. Another said if my builder co-signed on the loan it wouldn’t be a problem. 

I am looking for suggestions on what may make this easier for a first time investor, funding suggestions, or other tactics. I’d prefer to not approach a builder to co-sign on the loan (which I don’t see happening), and I’d also prefer to not inject too much more equity into the deal if I don’t have to. 

Thoughts I have lately that seem tough to find info on:

1) asking owner financing to “subordinate their equity” to me, to utilize all land equity 

Could someone point me in the right direction, if there are any previous posts that address this?

I have a project that I am working on, the formal partnership is not set-up yet. 

There will be 3 partners (each providing a portion of the required investment, and each taking a portion of ownership/profits in the LLC) who will be listed in the LLC. Other family members & friends are interested in providing cash investments to the LLC to get us started (to receive a set return, guaranteed), but will not be partners in the LLC.

What type of partnership structure is the best for this? And how are the family/friends that provide cash investments structured for the LLC?

 Thanks for the response Chris. When you mention an equity partner, you are referring to that equity partner privately funding the land purchase and leaving banks aside?

I am under contract to purchase a 0.75 Acre plot of land. It is currently two lots zoned R-2, but one lot is landlocked. I intend on purchasing the land, re-zoning to R-3A (in-progress) and amending the subdivision plat to turn the lots providing both proper frontage. All of this is in process with the AHJ and Engineers. Once re-subdivided, before the amended subdivision plat is recorded with the City, I will need to install a water line and a CMU wall along adjacent property.

Does anyone have experience with a type of bridge financing to purchase vacant land and close fast? I do not intend on building on the lots for about a year or so. I would want to purchase the land, finish re-zoning/amending subdivision, continue building some additional capital and begin construction within a year or so.

Or any suggestions on how you would fund the land purchase?

Two separate but differing gmail email addresses. A bandwidth.com internet phone number, an address in a saint louis landmark with no suite number, a 5% interest rate, legal fees due at closing. 

The 5% interest rate can’t be real in this market, and they “may be going up soon” according to them. 

Has anyone ever used this company for financing? Trio financing LLC

I’m almost certain they are trying to scam, however the gentleman I spoke with on the phone was very informative. 

https://triofinancingllc.com/

I am a first time investor, but a seasoned construction management professional. I have worked for ~10 years as a project manager on a wide variety of construction (institutional, hospital, hotels, student housing, commercial and multifamily).

I am under contract on some land with a 90 day contingency/feasibility period, during which time I am rezoning a small parcel of land, completing architectural plans, acquiring building permits and securing financing. I plan to build two fourplexes (8 apartments total) and rent both short term and long term. After construction, I will refinance and hold long term. I plan to purchase in an LLC and manage construction activities myself.

I am having a hard time finding suitable financing. Most lenders I have spoken with will not utilize my professional experience (as a construction project manager) to satisfy the past performance requirement (typically 2-3 projects in the last 3 years), and are not able to assist due to past performance. The project pro-forma is great, and many said they are able to finance if I can get a partner to co-sign or join my LLC.

I have seen suggestions to JV with a builder for solely the construction period (to check the box on past experience), and utilize that builder for construction. I have also seen suggestions on finding another partner to let in on the deal, which is not my desired solution.

Is anyone able to lend some advice, or experience, on what the best way to meet the past experience requirement for lenders is for a first time investor?

#fourplex #multifamily #new construction #BRRRR