Commercial New Construction Loans are invaluable tools for Investors. These Loans are tailored for those who possess the tenacity to take a Project from conception, to actually acquiring the Land, and then on to the Opening Ceremony. Engaging in Commercial New Construction is considered a top-tier venture in Commercial Real Estate investing. Investing in Commercial New Construction allows you the unique opportunity to bring your innovative designs to life. Also, this type of endeavor offers you an unprecedented control over the entire development process, from selecting the site location and design, to overseeing the most minute construction details of the Project. You have the flexibility to shape every aspect of the project to strategically align with your own personal vision, or the vision of the future Tenant, or the vision of the backend Buyer.
THE LOW DOWN…
Typically lasting up to 36 months, a Commercial New Construction Loan allows you to either purchase Raw Land and build, or develop an existing Property that you already own. Having to put down at least 10% of the Purchase Price is common, but if you already own the land, or if you have a substantial amount of Equity in another, unrelated Property, you can potentially use your Equity as collateral, thereby creating a “No-Money Down” scenario for yourself. The maximum Loan amount is generally up to 70% of the After-Repaired Value (ARV).
CONSTRUCTION LOAN OPTIONS:
SMALL BALANCE OPTION:
Transaction Size: $100,000 – $10MM
Max Refinance LTV: 75%
Max Purchase LTV: 75%
Max LTC: 85%
% of Construction Financed: 100%
ARV: 70%
Minimum FICO: 680
HIGH BALANCE OPTION:
Transaction Size: $3MM – $150MM+
Demographics: Most Major Markets Nationwide
Term: Up To 36 Months
Asset Classes: Most Considered
Max LTC: 90%
ARV: 70%