Another Financing Question?
what are some of the general stipulations that lenders require when it comes to a commercial loan. i know that alot require 20% down. also if i want to get a loan for buying the land and building or reconsructing then can they combine both. and how would i be able to come up with the down on a loan for a couple of million? should i seek out investment bankers to front the down payment or partner up with someone. if there are any posts that address this question, please give me a link or any recomendations on books that get deep into development would be great. thanks
private equity partners often cover the gap between the bank's A&D loan and actual cost so that there is little out of pocket at first for me.
thanks for the help woodsong, you obviously know whats going on. so would these be investment bankers or even REITS? and how do you come up with what percent of profits do they get for floating the down and any holding costs? is it usually 50/50 in your experiences. thanks again.
Quote:
On 2004-11-17 23:41, woodsong wrote:
private equity partners often cover the gap between the bank's A&D loan and actual cost so that there is little out of pocket at first for me.
Woodsong-- Have a contract on appx 12 acres in the Lithonia area of Georgia. Engineer says I can get 24 to 27 lots (R100), but I will need to bring sewer ( located at corner) to the property. Dekalb County (so far) says no problem. I am looking for A&D financing-- know any lenders that will offer good terms and are reasonable to deal with? I need about $500,000, (180 for land and 320,000 for develoment construction) and have good credit. Thanks, JMAX.