When considering taking on a small building project, it is important to know all four phases involved for financing. Below is a quick overview to map out the key steps:

PROJECT FEASIBILITY & PREDEVELOPMENT

• This is the research, due diligence and information gathering phase to optimize your project and determine viability.
• Consider your team. A range of expertise is needed to develop and maintain small multifamily buildings. Identify supporting experts who will complement your skill set.
• Assess the site and project, including the physical needs of a site, researching market and municipal considerations and understanding how these affect the bottom line.
• Explore financial options and the process of working with a lender.

CLOSING

Examine the paperwork needed to close and what to expect on closing day, such as commitment letters, common documents and legal considerations/costs.

CONSTRUCTION & REHABILITATION

Learn the standard requirements of a construction loan, including the requisition process, change orders and converting to a permanent mortgage.

PROPERTY MANAGEMENT

Ensuring a small multifamily building is occupied and in good health requires ongoing work, including marketing and renting units, hiring a property manager and maintaining your building. Management of these elements determines the long-term profitability of your business.

Download the Small Multifamily Building Project Financing Process Map