In need of a bank that will finance spec construction!

[KC Dash]

I am looking for a National bank that will finance spec construction. I am willing to put down 50% per project. I do not want to go the hard money route, but instead find a bank willing to loan conventionally for spec construction.

Any thoughts??

Thanks

 

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[bflash98]

Are you talking about putting down 50% of the vertical construction costs or 50% of the land and vetical construction costs?

Most of the national banks aren't loaning money for spec houses. Your best bet is probably a local community bank though you may just have to have the house sold before anyone will give you a construction loan. It depends on where you live.

 

[KC Dash]

I have checked all of the local banks and they are shut down. I own the land am willing to put up 50% of the cost to build.

 

[Russ H]

kcw983-

Looks like the google bots are all over your request, and ready to help you:

-Russ H.

 

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[hakrjak]

If you aren't willing to live there, it ain't happening right now.

-Hakrjak

 

[hatterasguy]

Not happening unless you already have an established relationship with the bank.

These days I'm building my spec houses with cash and a partner, because thats all thats out their. Although hard money is availible. My uncle has a big already existing business line of credit and cash, thats how he is doing his.

If you have enough cash to cover 50% of a deal, hard money should be pretty easy to get. I'd go with that, or just partner with someone for the other half. Partnerships are pretty commen around here on deals like this these days.

OTOH you really don't want a big note on the house. These days you have to be able to afford to hold them for a very long time, a year or more worst case.

Unlike in recent years, now cash is king.

 

[CashFlowDepot]

Instead of going to a bank or mortgage broker and instead of a hard money loan, you should investigate using a Private lender. There is a lot of money just sitting in IRA and Roth accounts and individual bank accounts looking for a way to make a safe 6-7%.

Who do you know who has some "lazy money" just sitting in the bank?

That would be your best and easiest and cheapest source for funding!

 

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