I’m building a student housing project and can get 80% Loan To Cost from my local bank. This is a $1 million project, which means I need $200,000 obviously. I don’t have $200,000 in the bank so I’ve got to raise this money. Anyone know of any way to raise equity partners or do some sort of joint venture. I’m looking for institutional firms to do this, not just going to the richest guy in town. Thanks in advance for the help.
I’d put together a good business plan on the project and hit up some loan brokers and small banks. For commercial construction $200k is a bit of an odd amount. It is larger than a lot of normal lenders want to put into a 2d position, but much less than most institutional investors would look to do.
Small local banks in your are might be right up your alley. They are often more flexible then regional or national groups and actually have part of their bank charter to give loans that improves the community. Call and ask for the bank officers that do “in-house construction loans” and make appointments to talk to these people. Explain your situation and ask them if they have any loan programs that could help you. Often they will, especially if you open a business account with them.