Build Opportunity from the Ground Up
Grow Through Development
You’ve done your research and found the perfect location. It’s got a strong customer base and a thriving economy. The trouble is, everyone else knows it’s perfect too. Hot spots like these can have skyrocketing property values. But if you’re not already established there, those high values can make moving in a budget breaker.
Land Acquisition
The first step to any construction project is getting the land you’re planning to build on.
Once you’ve acquired and prepared the ideal place for your new building, it’s time to get started on the construction.
While every property is considered an investment, so-called “investment properties” are designed to make money.
If you’re looking to make money from real estate, but don’t necessarily need more buildings, you can buy properties to upgrade.
With our lender network there are multiple pathways to business growth.
Match Financing to Your Objectives
The first step to any construction project is getting the land you’re planning to build on. Land acquisition loans can help you do just that. Instead of producing a large payment upfront, you can hold off on payment until the land is ready. Save that money for other areas of the project and use that time to save for repayment. A loan allows you to get started sooner.
Land development is more than just packing soil and clearing trees. You’ll need a surveyor to examine the area, an environmental impact assessment, city permits, utility connections, and water retention planning at a minimum. All of these extras add up quickly. That’s why a land development loan is such a valuable tool.
Once you’ve acquired and prepared the ideal place for your new building, it’s time to get started on the construction. You could finance the project out of pocket or get a traditional loan to cover expenses. Then, what if the unexpected happens? Labor shortages, natural disasters, and supply chain problems can all derail your plans. If you’re forced to delay or even stop construction, you’ll still be on the hook for repaying the entire loan.
Construction loans are built with the unexpected in mind. Before breaking ground on the new project, you and your lender will agree to a set of milestones. Funds for one milestone aren’t released until the first milestone has been met. This way, if something happens, you only need to repay a portion of the total loan.
The average construction loan is only meant to last until your construction project is complete. Until you’re ready to cut the ribbon, you only pay the interest. When you’re finished building, the principal of the loan comes due. Some construction loans give you the option to pay the loan principal immediately or transition to a permanent loan.
If you choose to transition from the short terms of the original construction loan to a permanent loan option, you don’t pay the principal as a lump sum. Instead, the principal rolls over into a long-term loan. From then on, payments go toward the principal and the interest. This type of loan is more convenient than taking out two separate loans.
While every property is considered an investment, so-called “investment properties” are designed to make money. They’re typically buildings that house tenants who pay rent to the owner. The owner makes back their initial investment into building or acquiring the property through rental income. Investment properties can include office buildings, retail centers, apartment homes, and hotels.
Investment properties can be very lucrative with the right management and market. But it still takes that initial investment to get started. That’s why an investment property loan is such an attractive financial tool. These loans are short-term, usually just a few years. Once the property is built and tenants move in, that income can repay the loan quickly.
An owner-occupied property is simply one that the company that owns the building uses for their business. To be considered “occupied” by the owner, that owner has to use at least 51% of the building’s available space. Loans for owner-occupied projects are structured a bit differently from a standard construction loan.
In most cases, the loan terms are better than either a permanent or construction loan. That’s because, from the lender’s point of view, you are less of a risk if you intend to use the space yourself. The Small Business Administration offers a 504 loan that can be used to build or repair owner-occupied buildings with just a 10% down payment.
If you’re looking to make money from real estate, but don’t necessarily need more buildings, you can buy properties to upgrade. Once repairs and renovations are done, you can resell the property for a profit. Fix and flip loans are the perfect way to finance the real estate you intend to flip.
The short-term nature of these loans means you don’t have to be locked into payments for a property you no longer own. Because fix and flip loans can be approved quickly, you can jump on great real estate deals before they expire. You can also make a cash offer when your competition is stuck waiting for traditional financing.
Advantages
Loans make building property affordable.
Customize your building just the way you want it.
Stop paying a landlord.
Get the location you want, even when properties are expensive.
Increase your holdings
Grow Through Development
Up To
%
Of Construction Cost
As Low As
%
Interest Rates
Up To
%
Of After Repair Value
Grow Through Development
Begin by filling out a short questionnaire. Your answers help us get an idea of who you are and where you want to go.
Here’s how to get started:
Strained resources
Rental Revenue
Leasing issues
High-cost markets
Turn your vision into reality
Take your property portfolio to the next level by building what you want where you want it. Avoid the high cost of buying in a seller’s market. Development, construction, and renovation can all be financed through our lender network.
F.A.Q.'s
Let us show you what’s possible with our wide range of loan options.