Posted by Kenneth Hocking on June 07, 2007 at 19:37:51:
scotsmanguide.com has a great list of lenders commercial and residential… they may be in it!
Construction Financing - Posted by Seng
Posted by Seng on May 30, 2007 at 11:05:53:
Hi Folks,
Wanted to see if any seasoned builders/investors can help me out on this one. I have land on escrow and just finished splitting it into two parcels. One is going to be a duplex and next to it single family home. All the plans have been done and we’re just waiting for designed and review process (4-7 weeks) and will be able to build soon after. Problem now is financing. I have work with a local mortgage broker that promise me they have financing already secured but apparently now the loan can’t be done. I understand the impact of the mortgage industry the past several months and what it has done. I have a 620 mid-score (told I need over 680), over 2 years W-2, can go stated or full doc. This would be my first build but have been involved in this type of field for the last 4 years. I don’t want to go hard-money route but at this point wanted to see how other builders view this project. The other option I have so far is to build the Duplex first as owner-occ(I already have 2 interested buyers) and then build the house the second phase. Preferably, I like to build it simultaneously and get both projects sold within 2-3 months of completion. The General Contractor/Builder is licensed and has a proven track record of over 50 homes built so far. If you need more information, please ask me. Any suggestions or feedback would help immensely. Thanks for the time and good luck to all.
Seng
LOCAL BANKS ROCK - Posted by Kenneth Hocking
Posted by Kenneth Hocking on June 07, 2007 at 19:45:55:
Seng,
Get your your Project PRE SOLD with deposited Earnest Money (5%-10% ) of your sales Price at the title company on the unit you say you have sold…
Make sure the Contract allows for the Earnest Money to be immediately Released to YOU as the builder…
Take this CONTRACT and the receipted copy of the earnest Money and they RELEASED earnest money to the BANK Preferably a Small Local Bank and thell them what you are planning to do…
Take with you a Pre-approval Letter for your TAKE out Buyer that gave you the Earnest Money…
Use the COntract the Pre-approval Letter and the Proof f Funs to get the Local Banker to lend you the construction funds…
If the normal rate is 1 to 2 points let the banker make a bit on your first round tell him you are looking for a relationship not just cheap funds…
If you can re-sell both the Fantastic… Take the above and go in with BOTH contracts and BOTH EMD checks that have been receipted and then RELEASED to you…
SIGN UP FOR ED’s COurse I did and will be there at the END of JUNE
Good Luck
Re: Construction Financing - Posted by Dr.cyril Richards
Posted by Dr.cyril Richards on May 30, 2007 at 12:50:26:
I am a commercial loan Broker,I have 15 years doing construction loans and other types of commercial hotels housing developments.a lot of mortgage people does not know about these4 types of loans.I can do this loan. please email me at gcfcorp2005@yahoo.com or phone me 1718-452-3449,thank you.trust me.it can be done
Re: Construction Financing - Posted by Mattg
Posted by Mattg on May 30, 2007 at 11:36:08:
seng-
Has your broker tried Bismarck lending?? they are a owner/investor builder loan company.they will do up to 100%.
Re: Construction Financing - Posted by Chris
Posted by Chris on June 05, 2007 at 07:41:49:
Could you e-mail me the contact info. on Bismark?-My people would be very interested in talking to them-thanks-Cobra
Re: Construction Financing - Posted by Seng
Posted by Seng on May 30, 2007 at 11:49:34:
I wasn’t inform of any lenders that the information packet was sent to but I would like to give them a try. What is the best method to contact them. Thanks again for your time.
Seng