Land Must be Fully Entitled & Ready to Build
We work with new investor with NO experience
| Line of Credit (recourse) | |
|---|---|
| Program Summary | The new construction program is best suited for developers or investors building 1-5 properties at once. |
| Minimum Experience | 1 fix n flip or rental property owned within the past 5 years |
| Individual Loan Size | $150K - $2.5MM |
| Line of Credit | $250k - $10MM |
| Interest Accrual | Full accrual on max loan amount |
| Max Loan-to-Value (LTV) | 75% of After Completed Value (ARV) |
| Max Land Aquisition Financing (LTC) | 60% (no permits) 75% (with permits in hand) |
| Max Construction Financing (LTC) | 100% of construction budget |
| Borrower Type | Individual, LLP, LP, Corp, or LLC |
| Eligible Property Types (non owner occ.) | SFR, 2-4 units, Townhomes, Multi-family (5-20 units) |
| Exposure Limits (LOC) | Renovate or build multiple properties up to the approved Limit |
| Draw Balance | Available |
Land Value: $100,000
Anticipated Construction Budget: $200,000
After Repair Value (completed): $350,000
Land Financing Max LTV: 75% (60% without permits)
Construction Funding Max LTC:100%
After Repair (completed) Max LTV: 75%
| Initial Loan Advance for Land | $75,000 ($60k if no permits) |
| Funds Available to Draw Throughout Construction | $200,000 (construction budget * construction funding LTC factor) |
| Max Total LTC | $255,000 |
| Max Total LTV | $262,000 |
| Max Loan Amount | $255,000 (we lend to the lesser of the Max Total LTC or Max Total LTV) |