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MultiFamily Financing Options

I am trying to buy an empty lot and build 10 unit multi-family home. The whole project would cost around $2.5mm. Is there any kind of mortgage that would finance the land and then the construction. I am very new to this, and was wondering if this is even feasible in this market.
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July 20 2010 - Jersey City
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AmateurInvestor, is this your first project? Are you a builder? Do you have any money? Regards,
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July 20 2010
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No this would be my 2nd project, first one was more confirming as it was below 4 family and was able to finance it through FHA. However, given this project would be twice the first one, was wondering if there was any  kind of financing that I can qualify for. I can get private investor, however I prefer to avoid all of that and just get finacing instead. As far as Capital goes I can probably do 10% down.

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July 20 2010
AmateurInvestor, what about the redevelopment of an old building into housing units? Regards,
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July 20 2010
Expect to put 40% down on a development project.
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July 20 2010
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it's an empty lot, parking space. My first one was redevelopment of an old building. So I guess there is no other option?
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July 20 2010
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Lending standards have changed and every banks wants significant skin in the game to loan money now. Maybe you could get partners?
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July 21 2010
AmateurInvestor, would you try another property for redevelopment? Regards,
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July 21 2010
more than 4 units will require commercial financining and I would bet that 10% is not enough skin in the game for a commercial loan.
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July 21 2010
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Hoe does GNMA MultiFamily work?

Think this project can be financed through the Agency channels?

Frank, I would consider another property for redevelopment if I cannot handle this.

Thanks
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July 21 2010
 
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July 21 2010 | 9 answers
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