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NMLS: 389650

CA DRE: 01214863

Construction Loans

Ready to go vertical on either a scattered site or multi-phase construction project for either retention or resale?  

Initial Questions….  

Have plans, permits and architectural renderings been approved?  

Subject property status - already purchased, under contract or still looking?

Is there a fully licensed general contractor on board with a strong resume and errors and omissions insurance?

These are some of the questions that help determine the present status of the project and present project value, if an after improved value (ARV) can be established by appraisal or if there is a need to combine the purchase of the subject property with a construction loan.  

Rates and terms vary depending on location, size and construction time but typically the construction period is between 12 and 18 months a typical margin of 2% to 4% over Wall Street Prime.  Typically interest reserves are built into the loan so no monthly payments are required during the construction period.  

If the project is a residential track built for resale rather than retention the release clause is of vital importance and addresses the amount of proceeds used to repay the construction loan and the amount paid to the developer and can vary.   

Construction Completion: The type of lending available if, for whatever reason, a construction project comes to a stop and is presently at a standstill.  There are a multitude of the moving parts but projects in this dilemma can certainly be funded. 

Provide us with all of the project details so we can assist.



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