Posted by ray@lcorn on January 05, 2005 at 20:19:11:
In Reply to: My condo construction project-need help posted by rdlazo on January 04, 2005 at 04:10:33:
Rudy,
I don't think $200T will be enough equity unless you have a standing relationship with a bank and development experience. You may talk with a bank and cross-collateralize other assets, but that is a VERY risky way to develop property. If anything goes wrong everything you own will be at risk.
You either need a partner with money and experience, or redo the land deal for a subordinated note to be paid from the first several condo proceeds in a split payoff with the construction lender. Then you can use the land equity to get the construction loan, use your $200T for the plans and engineering, and work like hell to pre-sell some units.
ray