Construction Loan Financing
When it comes to construction financing, the ability to have a quick closing can mean the difference between a detailed profitable project built on time and under budget or another lost opportunity. Given the risk that comes with rapidly changing market conditions, Our teams "deal certainty" can be a game changer for the experienced builder. While banks are still in loan committee, our construction borrowers are out of the ground and on their first or second draw. Our construction loan program are fast, common sense, and often one of the simplest financing programs of its kind in the market today.
Construction Loan Program Details
Property types and requirements
- Spec residential - attached, detached, high end fix & flips, multi-family or broken projects, in-fill Commercial projects can include acquisition financing and asset repositioning
- Ground-up or construction completion and broken priority... and we can finance the acquisition, too
Realistic construction periods
- Up to 24 months, or more, depending upon the scope of the project
- Can accommodate multiple phases and sensible, market driven partial releases
Borrowing entities and credit requirements
- Owner, builder, spec or custom home construction
- Individuals, corporations, LLCs, partnerships, trusts, estates, international investors, etc.
- Ground-up or broken priority
- Combine multiple borrowers or multiple entities in a single transaction
- Decisions are based on the quality of the project
- No prepayment penalties or yield maintenance
- Lending team manage construction fund controls and inspections for projects throughout the west
- Quick, flexible dispersals. One-week turnaround on draw requests
- Custom draw schedules that support your project
- Experienced construction managers are available and at your service
- The ability and willingness to structure sensible solutions to your construction financing needs
Responsive portfolio lender
- Dan's team doesn't rely on credit lines or depend on reselling to the secondary market
- Offers the creativity and flexibility that comes with being in the business for years
- We offer loans for any type of commercial or residential real estate situation where a quick closing is needed. We know our markets and can get to deal certainty while the bank is still asking questions. Same-day turnaround possible on expression of interest
Simple Construction Loan application process
Present a clear financial plan for your home project.
Private money lenders will fund 60 - 70% of the after-repair-value (ARV) of the home; you will be responsible for funding the additional 30 - 40% of the additional cost or "Skin in the Game". If you have this cash on hand, that will increase your chances of being approved for the loan. If you do not have the money to cover the additional 30 - 40% of the home's value, then the lender might put a lien on another property that you own.
- Most lenders will prefer that you have 30 - 40% of the additional cost in hand rather than using another loan or a credit card to finance the difference.
- This generally applies to Spec homes, not to large commercial projects. Those can get more detailed.
Prepare additional documentation. Although most lenders are concerned with the value of the property you want to buy, they may also ask for your personal financial information. This might include documents such W-2s, paystubs, bank statements and other items in your credit history. You should be prepared to present all of this information to your lenders.