financing commercial construction - Posted by kyle

Posted by chet on January 03, 2005 at 24:08:11:

do you plan on owning it after construction?

One option is to check out SBA financing.

financing commercial construction - Posted by kyle

Posted by kyle on January 02, 2005 at 14:41:48:

im trying to purchase 1 acre of water front land for 500,000 the building i want to put on it will cost about 700,000. i have 300,000 to put down.i own a residential construction co. and ill be building this myself, it should be worth about 1.7-2.0m when im done.the problem is that im youg and i dont show alot of income through my co. but my credit is good. i want to use this building to start a skateboard park and jetski and boat rental. the banks are not exactly familar with those types of buisness in my area so they cant help. im depending on the value of the building to get me this loan. any info on who could help me would be greatly appreciated. recpecfuly,kyle

Re: financing commercial construction - Posted by ray@lcorn

Posted by ray@lcorn on January 03, 2005 at 10:28:26:

Kyle,

You will need local bank financing to get this deal built. They are in the business of putting money to work, but you’ve got to show you can pay it back. You’ve got great equity, but that’s just the start.

Don’t be so quick to assume the banks don’t know about your business… you may be surprised at how quickly they learn, but it’s up to you to show you’ve done the legwork and thought the deal all the way through. No lender will fund a deal without details. Take the time to write a business plan. Detail your construction costs and the projected income for at least three years. Show them how you plan to pay the money back, including a “Plan B” if the initial projections don’t come to pass.

ray