Financing Information
I'm a contractor and investor who is trying to build 10 new duplexes 2 bd 1 ba wanting to finance 50% of appraised value. I have decent credit and about 1.2 mil. in equity in other properties but banker is hesitant. where else can I look for financing
[addsig]
You can:
- Get HELOC's on your properties
- Do cash out refinances on your dormant equity
- Get 2nd mortgages on your property(s)
- Cross-collateralize you dormant equity as a down payment on your development project
- Use your IRA as a financing source
- Get a line of credit
- Get a construction loan if you have the experience AND successful track record if you do not have the experience AND successful track record, you can go commercial hard money
You did not state if you have ever done this before. This will play a very important role in acquiring your funding.
Are you going to sell the properties retail or wholesale them out to investors? Are you going to keep them for income?
If you are going to sell them retail, then list them with a real estate broker and get them pre-sold. If you are going to wholesale them to investors, then get some contracts signed and you can acquire funding on the basis that you have them sold already. If you are going to keep them for income, then look into government subsidized housing programs, they will provide good financing programs to developers who create low income and affordable housing for certain demographic markets.
As you can see there is an array of funding for you.
Phil
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