How to Discover the Best Loan Programs for Construction Financing in a Large Multifamily Project

How to Discover the Best Loan Programs for Construction Financing in a Large Multifamily Project

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Hello Beau,

I'm on the verge of obtaining entitlements for constructing a 100-unit multifamily building in Alabama. Could you provide some valuable guidance on locating the most suitable bank loans for my project?

Thanks!
Cathie

In this episode, Cathie seeks guidance from Beau regarding the best loan programs for a large multifamily construction project she is about to undertake in Alabama. Beau explains that banks are currently tightening their lending for ground-up multifamily construction, especially in smaller markets with populations of 15,000 to 20,000. However, he assures Cathie that they can still help her secure financing for such projects.

Beau emphasizes the advantages of working with a commercial mortgage advisor, like his firm, who have extensive connections with banks, credit unions, bridge lenders, and non-bank lenders specializing in construction loans. He mentions that his firm has two platforms where they submit their deals, allowing hundreds of lenders to review the project details and provide quotes if it aligns with their criteria. Beau highlights that working with a commercial mortgage advisor would not cost Kathy more money in the long run, as they can secure higher leverage and the best cost of capital compared to her independently approaching different financial institutions.

Additionally, engaging a commercial mortgage advisor would save her significant time and effort that would otherwise be spent approaching multiple banks and credit unions individually.

Beau advises Cathie that despite the tight lending market, having a track record of successful ground-up construction projects, a portfolio of multifamily assets, a strong balance sheet, and a reputable contractor with experience in similar projects will enhance her chances of securing favorable financing terms.

If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask

Timestamps:
(00:02) Question about locating suitable bank loans for a ground-up multi-family construction project
(00:20) Challenges and considerations for ground-up construction projects
(00:38) Benefits of working with a commercial mortgage advisor and accessing a network of lenders
(01:05) Reasons why it’s not going to cost you more money to work with a commercial mortgage advisor
(01:48) Book a call at https://investorfinancingpodcast.com/rumble

💥 Thanks for watching 💥
#Multifamily #multifamilyinvesting #loanprograms #constructionfinancing

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.