All Forum Posts by: Account Closed

You can find a partner to come up with the down payment. Be careful when somebody says they can do 100% financing. Make sure you ask all the details. How does it work. 100% funding is not how a normal hard money lender works. You may also try HELOC from your primary home if there are a lot of equity.

What are the property values? Are they close to each other? @Fang Underhill

@Jason Conner I have applied construction loans for newly created business. I don't think Nascent business is an issue.

@Michael Keane If you still can qualify personal loans, that is your best option. If you can't qualify for the conventional residential loan, hard money or called commercial loan would be your option. 

@Jason Conner Have you GC done projects in the recent three years? If you have 15-20% of the total project cost (land purchase, building cost, loan cost, etc) with an experienced GC, you can try commercial loans for new construction.

@Andy Chen, Commercial loan doesn't look at your personal income. As long as the rent income from the multifamily can cover all the expenses and the mortgage payment and you have the down payment in your bank account, you can qualify. Of course, you need fairly good credit scores.

Blanket loan on commercial lending would be your option either now or future. You will not be happy about the rates/terms because they are "much" higher than conforming loans. But once your business shift to another level, your vision also shifts. :). Current commercial loan rates for residential investment property is around 5-6% with 1-3 points, and prepayment penalty within the first 5 years. Lenders want you to apply first because it requires a decent amount of due-diligence to give you a quote. All the properties must be in good cash flow, move-in condition, etc. I don't know how much information you are willing to provide to shop around. It needs much more when you shop for a single property. Hope this helps you.

Are all the houses in a same county? What is the lowest value house and what is the average house value?

What is your new construction experience in the last 3 years? Most lenders require 5+ projects done in the last 3 years to issue you a construction to perm loan. If you have less experience, you may want to look for the construction loan first. Some lenders specialize in construction loans but don't do long term loans. You can refi into long term loan with another lender when the project is done.

How many new construction experience do you have in the last 3 years? Most lenders need 5+ to get you a construction to perm loan. If you have less experience, you get a construction loan for your project, and refi into a long term loan after construction. Different lenders have different lending area.