Best construction loans for conserving cash flow

General Real Estate Investing
1

My LLC (2 members) has been doing development on lots and small rehabs using traditional banks with construction loans. We would like to take our biz to the next level, and get into $1M-$2M condo conversions. These are typically existing small apartment buildings (< 10 units), or warehouses, etc. For these size projects, however, cash flow will be an issue.

What is out there as far as LTV on these commercial loans, and do they offer construction type financing? We have good credit (FICO > 720), and good income from our “regular” employment. What we don’t have is a lot of cash on hand to sink into one deal. We prefer to spread out our cash as much as possible.

I’d appreciate any direction you could provide.

Thanks in advance,

Mark Lepore

Hawk Investment Properties, LLC

2

Mark,

I am currently working on a condo conversion in SC for $7M and another in Birmingham. If you need 1-2$M for acquisition I can do upto 95% CLTV but for condo conversion the amount needs to be at least $5M. You may want to check with your local bank, but commercial loans $100K - $1.5M No doc or full doc we have the best programs available.

3

Rod,

Is that an inhouse product? Or are you brokering the loan?

4

Chris,

Are you referring to the No Doc program or condo’s?

5

the no doc program. i have a borrower who is in need of the same program. also, do you know of any commercial lender that will waive the prepay?