have secured a property with 23k down, seller holding 142k at 7%. Need 150k for engineering and development of five lots, worth 120k apiece after development. Also want 1.1 million to build the five homes worth 2.0 million after project is completed. Have two other partners. My fico is above 650, partners are around 750. Local banks will not lend on the five homes, just on the development. I build for a living and want to clear up one year of calander and focus on this project and then if the homes haven’t pre-sold, let the realtor do his work while I move on to something else. Any help?
One thought is that if you are able to pre-sell the homes before you start construction, your buyers can obtain a one time close construction loan, freeing up your cash and you would then not have to finance the construction phase on the homes, the buyers would obtain their own financing for that phase.
If you and your partners have been in business for more than 2 years then you may qualify for an unsecured line of credit (on your partners scores) up to 250k. shoot me an email if you would like some specifics
I agree with the person who said that you should pre-sell and let the buyer get their own financing. a smart marketer would try to keep feeding them through his lender to better help his own situation on the rest of the deal. Not real complicated. It can be done.