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    11 Replies Latest reply on Jul 20, 2009 12:15 AM by CorpCredit

    How can I get funding????

    jeannine22 Newbie
      My partner and I am trying to get a loan on my own property with my $200,000 in equity with a experienced partner who has built home for over 15 years and extremely great credit building custom homes million dollar and up homes. We cannot find a loan to start our first project together. ANY advice from any financial geniuses out there?
      Thank you,
      Jeannine
      jeannine2222@msn.com
        • Re: How can I get funding????
          LUCKIEST Guide
          How can I get funding?? Welcome

          Who are you?? Go to Members page and share some info.

          To get funding you need a business plan.
          • Re: How can I get funding????
            phanio Pioneer
            There are many non-bank commercial property lenders that provide funds at 60% to 70% of value.

            Business Money Today
              • Re: How can I get funding????
                jeannine22 Newbie
                Where do I find these things please?
                • Re: How can I get funding????
                  oldmoneymaker Newbie
                  When they say they will loan 70% they mean of fair market value. It`s only worth what your willing to give. So figure 70% ofwhat your willing to give. Not what you think it could be worth.Trouble is they will loan 70% of value but you have to come up with 30%. Local banks only asking 10%. So much for hard money lenders. Do you under stand what I`m saying. Fair market value is 100,000. And you can get it for 70,000 They will only loan 70% of your 70% cost of buying. Get out your check book. You need to come up with 14,000 grand.
                • Re: How can I get funding????
                  ryandmckinney Newbie
                  Jeannine22,

                  Funding is the toughest question it seems. I have worked in financial services and lending or 8 years. In all of my short eight years in lending, I have never seen the funding resources available to the SBA that are availabel now. You should google the "SBA CDC" in your area or do a search for "S.C.O.R.E.". Traditionally, SBA was known for it's mounting red-tape. Now that the lending world has been flipped upside down, the SBA looks like an ice-cream sundae.

                  There is a special loan called a SBA 504 loan that has recently found some new "leniencies" and cheaper rates. The good news is they WANT to lend you the money.

                  A CDC or Certified Development Company takes a Pool of investors for a certain area. They meet and decide to lend money to SBA participants. Their money gets put along side an SBA selected Bank and 2 loans are made.

                  Typically the breakdown looks like this: Loan $200k = Bank 1st lien @ 50% LTV (loan to value) | SBA 2nd lien @ 40% LTV | YOU 10% Down (skin in the game).

                  The rates are really low (comparatively speaking right now).

                  The deal is SBA 504's are for fixed property or real tangible property. No Silicon Valley Ideas here. This is for land, buildings, equipment, expansion, etc. check out sba.gov for your local CDC.

                  Hope this helps!
                  1 of 1 people found this helpful
                  • Re: How can I get funding????
                    CorpCredit Newbie
                    Jeannine,

                    If you own the land outright and have $200K equity you should be able to get a hard money loan on the land for 12-24 months and use the cash-out funds to build the home. Hard Money Land Loan Lenders are in the 30-60% LTV range. Some will even lend a higher LTV by going off of the end value (what the property will be valued at upon construction completion) . When the property is built refinance into a conventional loan. I reccomend Hard Money becasue even though its initially more expensive you save in time and headaches you would have trying to search for cheaper funds that really arn't out there right now. There are a million hard money lenders. Just make sure you check them out first becasue there are also a lot that pretend to lend but really don't.
                    Good Luck!