True 80% Commercial Construction Financing In 2020
This specialized commercial construction program is designed to start in the early stages of the project. Financing may include the acquisition and all hard and soft costs associated with the project.
The disbursement schedule is set per your construction schedule, and there is minimum inspections for the payouts.
This loan will auto-convert to a fixed permanent loan at no cost. In addition, your initial 20% equity will then be applied to the permanent principal loan amount.
Who is this for?
Deals that are Not Bank EligibleTraditional banks will have strict guidelines tethered with complex personal, project and market area criteria. This program is more open-minded.
Tertiary Markets/ Small MSA’sToday’s traditional lenders are more conservative on the projects area. This program is more open-minded.
High Leverage/ Low Capital RequirementsOnly 20% equity of the Total Project Budget is required. This is true 80% LTC financing. Financing may include land acquisition, soft costs, hard costs, contingencies, builder fees, interest reserve and more.
Any Asset Class & Special Purpose Development is OKWe’ll consider any and all types of projects.
Total Project Budget of $15M+
Rates between 5 – 6% for both construction and auto-converted permanent loan
Credit Facility Highlights
- Fast Underwriting – Easy Documentation
- Close in 30 days or less, if needed
- Financing up to 80% LTC of the entire Project Budget
- Financing may include land acquisition, soft costs, hard costs, contingencies, builder fees, interest reserve and more.
- Project to be $15M to $500M
- Requires 20% cash equity to be deposited into an escrow account up-front.
- A borrower may elect to purchase a financial bond to protect the equity investment.
- Any existing equity is not credited to 20% required.
- All Commercial Property Types
- Any asset class or special purpose – OK
- Commercial Construction Loan Auto-Converts to a Permanent Loan (15–25yr amortized)
- The 20% equity is then utilized to further reduce the principal balance at the time of conversion.
- Rates between 5 – 6%
- For both construction and auto-converted permanent loan
- Interest is not applied on the first 20% of the funds drawn on the project.
- Developer friendly construction draw process
- Disbursement schedule devised based on construction timeline
- Funding starts on the 60th day from closing date
- Non-Recourse Loan
- Financing only secured by the subject property.
- Based on project viability
- Principal does not need experience
- No tax returns.
- No personal financials.
- Requires an SPE LLC
- UCC Filing to the SPE LLC
- Owner-operator – OK
- Cannabis industry – OK