Supply and demand are leading to lucrative deals for contractors. Find out more about commercial loans for construction projects and how to get into this profitable investment strategy.
Optimism in the housing market is increasing as the rising demand stimulates the need for additional supply. According to Realtor.com, “Prices in the residential real estate market remain at seasonal and historical peaks while for-sale inventory remains very limited.” In addition, the average price for a home, nationwide, came in at $275,000, a 10 percent jump from last year’s median price. And that is good news for construction companies. If you’re looking to delve into this lucrative business platform, there are several options when it comes to financing your next or first project.
Though the Great Recession is behind us, commercial loans for construction of new-built homes are not as easy to obtain as they once were—before the subprime mortgage crisis. If this is your first home and you do not have a finished home to act as collateral, it can be particularly difficult. Connecting with a knowledgeable and connected mortgage broker who offers several programs to meet your unique needs can help you secure the financing you need for new construction.
Construction loans are typically short-term loans with higher rates. The lender will ask to see your plan, budget, and construction timetable and you will be required to make only interest payments on your draws until the project is completed. These draws act as a line of credit and are taken at varying intervals throughout the construction process.
There are no prepayment penalties, so as soon as the construction is complete, you can pay off the commercial loan. It’s good to be aware that not all lenders will include the lot cost in the loan.
Benefits of a Hard Money Commercial Loan
In today’s market, good deals can go quickly. You may have come across an existing structure in need of a tear-down and gut renovation as compared to your quick fix and flip. It’s in an up-and-coming neighborhood and time is of the essence in which case a delay in funding could mean missing out on a unique and hard-to-come-by investment opportunity. A hard money loan can be your perfect solution because it offers the same commercial loans in record time, with funds that can be secured in as little as two days. In addition to speed, you will not need a stellar credit report in order to get funding, just collateral.
Get your project underway and funded in record time by using the expertise of a mortgage broker that funds private hard money loans.
At Level 4 Funding, we offer construction loans for up to 24 months with a monthly quick payout draw program. We can also finance the land purchase and need minimal documentation to get started. This includes a copy of your budget, plans and permits. Funds up to $50,000,000 are available with an APR starting at 9.5 percent. Call us to discuss the best program to meet your needs.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
Technorati Tags: commercial loans,commercial lending,commercial mortgage
No comments:
Post a Comment