Working with private money lenders for construction loan
Hello all I currently have a 5 acre lakefront property appraised at 165k and I am looking to get a private money loan of around 550k to build out an Airbnb rental/campsite. Would something like this be possible? If so how do you recommend finding a private money lender?
[{"id": "it4cqjf", "text": "Probably not.  The only chance would be a hard money lender.  Even that will be VERY hard.  9%+++ interest and if you are 1 day late on your payment they will reposes.   They will probably want some extra collateral with that loan amount vs. that land value.  It's also a small loan which makes it a lot harder.  \n\n&amp;#x200B;\n\nYou can look at the exhibit map for ICSC events there are usually a lot of hard money lenders at those things.  There may be similar STR conferences with Hard money groups that specialize in that space.", "replies": [], "depth": 1}, {"id": "it5g2kh", "text": "Do you currently have a loan on the property or do you own it out right?\n\nI know a few commercial lenders that would touch this, but they would want to see 75% LTV if you're a great borrower and that would reduced if you were not. \n\nYou could cross-collateralize the construction loan with other properties, if you have anything else, to make the deal happen.", "replies": [{"id": "it5gr3j", "text": "Hey thanks for the response I own the property totally outright in a rapidly growing area in the country top 10 metro 32% in the last year alone. I have a credit score in the mid 700s (735-765) and only about 10k debt on a 80k income.", "replies": [{"id": "it7n8z9", "text": "I specialize in commercial lending. \n\nThe above poster is correct. I will say I know lenders who\u2019d do 80%LTV or 75% LTC with your CS. If you\u2019re an experienced investor (typically anything more than 4-6 doors) you can lower that to 75%LTV 70% LTC. Pay interest only on the draw like a bridge loan. Pm if you want info I\u2019m nationwide baby. \n\nEdit: Since you own the property that can be your equity and you could in theory come out of pocket with very very little.\n\nThere\u2019s a shit load of variables but that\u2019s the basics", "replies": [], "depth": 3}, {"id": "iter3w1", "text": "Sorry for the delayed response.\n\nI know a few lenders who would take a look at this. Shoot me a DM if you want me to pass along information.", "replies": [{"id": "itid84w", "text": "dmd", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]