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I am pretty sure many condo owners came up with this idea before but I was wondering how do you get funding for building a bigger apartment complex? We currently have a 2 different buildings and 58 units apartment complex. It is built in 1960 and getting very expensive to keep maintaining. We plan to get funding to build a 200 unit apartment complex and sell 150 extra units to pay for the project. Our current buildings are only 3 levels and we can go up to 20 levels in our county. We have huge wasted space and it can easily be used for the new building. I mean imagine you have 1,000 square feet dining room and you put a big table and 4 chairs in the middle of the room. Table and chairs only take 300 square feet but disable to use rest of the room for any other furniture.
Can we find a bank that will loan money for that type of project?
Can we find a investor who will fund this project and keep all the profit?
Can we find a company that will build a rental apartment complex and will allow the current homeowners to own their units and will operate rest of the units?
By the way apartment complex is in amazing spot, walking distance to major shopping centers, groceries and local business, and it is only 4 miles away from Pentagon and 7 miles away from DC. If you have any information or experience, please share with us. I am pretty sure that it is very complicated and expensive project however I think that it is not impossible !
You are talking major, major money here. If you don't know more than to ask an internet forum, my guess is that no one will invest in you. Developers do this type of work, not condo owners.
You are talking major, major money here. If you don't know more than to ask an internet forum, my guess is that no one will invest in you. Developers do this type of work, not condo owners.
We are the condo owners and the association! No, we are not talking about about major major money! If you consider anything less than 20 million as a major money then you are hopeless and this project will not cost that much money! Yes, I or we as an association do homework before we talk to contractors or developers. We try to gather as much as information and get feedback from other people so we do not look stupid! Internet is the best way to learn more and I recommend you to use it more often before making major decisions so you do not look silly! By the way, the whole purpose of this forum is helping others! If you cannot help or do not know anything about the subject, please do not comment. It is waste of data!
We are the condo owners and the association! No, we are not talking about about major major money! If you consider anything less than 20 million as a major money then you are hopeless and this project will not cost that much money! Yes, I or we as an association do homework before we talk to contractors or developers. We try to gather as much as information and get feedback from other people so we do not look stupid! Internet is the best way to learn more and I recommend you to use it more often before making major decisions so you do not look silly! By the way, the whole purpose of this forum is helping others! If you cannot help or do not know anything about the subject, please do not comment. It is waste of data!
USAA develops apartments/condos or maybe a REIT to partner up with. You could do some sort of deal leasing the underlying land for 50 years or something and then allowing the development with a portion of profit sharing etc...
A regular bank will give a construction loan, but probably not big enough for that project.
Commercial loans tend to be 5 year loans that must be refinanced every 5 years, so be sure you understand the terms and be extra sure you will make enough profit so that th bank will be happy to refinance.
Depending upon what sort of return, it would probably be easy to find private investors. There aren't that many secure places to put money that offer a good return, so if you can offer more than market interest, someone will be happy to get involved, especially since it should be well secured. (You will probably have to put up the existing buildings as collateral.)
Oh, also, be prepared for everyone involves to sign up for personal liability for the borrowed money. You are probably not well enough established to take a large mortgage just in the name of the homeowners association.
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