30 Unit townhome development

**monsecarl** · 08-11-2008, 01:55 PM

Does anyone know how I could get funding for a 30 unit townhome development in Central Florida. The property consist of 3.8 acres of land which has all the approvals and engineering in place. We have a 300k assignable grant from the county available after we build the first 3 units. We have owned the property for 4 years and have invested over 300k into this project. We owe 380k and had an appraiser do a pencil which came in at 1.2 mill. as it sits. I am stuck. I am willing to do a joint venture also. I would appreciate any help that I can get.
Thank you for your time.
Monse

**REbuyersgroup** · 08-11-2008, 07:17 PM

Key question is where in Central Florida? As you should already be aware, most townhome and condo developments are under extreme sales pressure, and many have gone back to the lender to unload at firesale prices.

Unfortunately, I would recommend holding out until inventory in the area is reduced to a 4-6 month supply. Currently I believe you are at 8+ month.

I am very familiar with the Orlando market as I specialize in Bulk REO Sales and Wholesale builder inventory.

As you said, financing is dried up and finding a JV partner with the funds to start building is taking a huge risk. That risk will require substantial equity in the project, probably more than you are willing to offer.

We are currently looking into JV deals on condo conversion REO's to take over from lenders in possession.

I sincerely wish you well, but hang on a bit longer.

**monsecarl** · 08-11-2008, 07:54 PM

Thank you for your response. I totally agree that the market is slow at this point, that is why we would like to lease option the townhomes for 2-3 years. We feel if we hold the mortgages until things stable out we can either sale each note at a discount or wait until everyone can get a motgage. We also have a few other exit strategies. So if you know anyone who might be interested please pass my info.
Thanks again for your time,
Monse