$1.25M Construction Loan (Condo Conversion)

My client/business associate purchased an R-4 Zoned property currently used as SFR, the plans are in the process of being approved by the city. Since there is no way that I can verify income in order to get this deal done, what route should I take?

Land: $886,000
Construction Costs: $1,200,000
4 units Priced at $725K Each

Fico’s (680 & 710)

Thanks for your help.

Lenders are starting to look at condo conversions in a less favorable light these days. This due to the oversatuation in the market of high priced condos.

So key questions are:

  1. Where is the property located? Are there a lot of condos in the area?

  2. What is the experience of you & your business associate? If this is your 1st project it will be more difficult getting financing.

You will only be able to get 50 - 60% on the land acquisition costs and depending on your experience level up to 80% on the construction costs.

Patti Porter