Looking for Senior Loan Lenders (Banks, Funds, Financial Institutions) For Residental Developments in Orlando, Florida.
My partners and I have just started a Real Estate Development company in Orlando, Florida. We all have developed before. My partners have developed and built both retail centers which they own and operate and housing in Orlando. I have a Development company in Mexico City and am well connected with financial institutions and the way they operate there but not with American Institutions.
As a group we are going to develop in the coming months between 2 and 3 residential projects in Orlando and will be needing loans that go between $2.5 and $5 millon USD each. The use of the financing is land development and construction.
I was wondering what type of institution better suits our situation/needs and if there are any firm I should contact.
Thanks for the help.
Based on the most helpful WSO content, there are several institutions that could potentially meet your needs for residential development loans in Orlando, Florida. Here are a few that come to mind:
Wells Fargo: They have a strong presence in the real estate sector and have been mentioned in the WSO threads as being active in lending, although they might require full recourse and lower leverage.
JP Morgan Chase: They are known for their balance sheet multifamily lending, which could be suitable for your residential projects.
Capital One Multifamily: They specialize in Agency loans, which could be a good fit for your needs.
Bank of America: They offer balance sheet CRE loans, which could be suitable for your land development and construction needs.
Key Bank: They also offer balance sheet CRE loans, which could be a good fit for your projects.
Remember, each of these institutions will have their own terms and conditions, so it's important to reach out to them directly to discuss your specific needs and circumstances. Also, keep in mind that the lending environment can change rapidly, so it's crucial to stay updated on the latest trends and developments.
Hope this helps, and best of luck with your projects!
Sources: A Banking Primer, https://www.wallstreetoasis.com/forum/real-estate/orange-county-ca-debt-roles-in-cre?customgpt=1, https://www.wallstreetoasis.com/forum/real-estate/is-anyone-lending?customgpt=1, https://www.wallstreetoasis.com/forum/real-estate/commercial-hard-moneyprivate-lenders?customgpt=1
Thanks alot!
I will keep them in mind and look for them in the near future.
Unless you can bring a bank deposits of 25-50% of the loan amount you’re going to need a private lender. It will be expensive.
Thanks for taking the time for replying.
I understand that the financing I am looking for is a project finance. The project is both the source of repayment as well as the collateral. I am looking for low leverage such as 25% to 40% LTV top. That should be a 2.5x to 4x collaterall to asset value.
Yeah, It does not necessarily have to be a bank we can consider private lenders such as funds or crowdfunding.
I have two questions:
1. What do you mean with deposits? In a scenario where I need a $3.5mm USD loan, I will be selling like 15 houses of $1mm USD each so the bank will be getting $15mm USD in deposits. And what do deposits have to do with the debt underwritting process? I do not know if the debt analysis process is different from Mexico where it is seen as a project finance completely.
2. What APR is expensive? 10%? 15%?
Thanks!
Probably looking at 12% + unless you have a PG or other collateral. PM me, I know a couple groups at that dollar figure.
Sure I will PM you. Thanks.
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