Unlock Project Potential with Flexible, Asset-Based Construction Loans Designed for Investors Like You.
As a strategic real estate investor, you see opportunity where others see risk. You identify undervalued land, envision transformative renovations, or plan lucrative ground-up developments. But securing timely, flexible financing for the build phase can be a major hurdle. Banks move slowly, demand excessive red tape, and often shy away from the unique dynamics of construction. That’s where we step in. As a private lender, we understand the unique needs of real estate investors and developers. Our construction loans are designed to provide the necessary funding to bring your project to life. Here’s a detailed overview of how our construction loans work and the benefits they offer to investors like you.
A construction loan is a short-term financing solution that provides the necessary funds to build or renovate a property. Our construction loans are tailored to meet the specific needs of real estate investors and developers, offering flexible terms and competitive interest rates.
A private construction loan from us is short-term financing (typically 12-24 months) specifically designed to fund the hard and soft costs of building or renovating investment properties. Unlike traditional mortgages based primarily on your personal income, our loans are primarily asset-based. We focus on the viability of your project, the value of the underlying real estate (including the future After-Repair Value – ARV), and your proven expertise as an investor.
A Partnership for Profit. Think of us as your financing partner, providing the capital engine to turn your blueprints into profitable reality. Here’s the streamlined process:
Pre-approval and Planning: We work with you to secure pre-approval for a construction loan and review your construction plan and budget.
Project Evaluation & Pre-Qualification: You present your project plan, budget, timeline, ARV appraisal, and experience. We assess the feasibility, the strength of your team (builder/GC), and the property’s potential.
Loan Structuring & Approval: We move quickly. Based on our assessment, we structure a loan tailored to your project:
Loan Amount: Based on a percentage of the project’s costs (Loan-to-Cost – LTC) and/or the future ARV (Loan-to-Value – LTV).
Interest Rate & Points: Competitive rates reflecting the short-term nature and project risk, often interest-only during the build phase. Points (an upfront fee) are common.
Term: Aligned with your realistic construction timeline (e.g., 12, 18, 24 months).
Interest Reserve: Often included to cover interest payments during construction, easing your cash flow burden.
Loan Disbursement: We disburse funds in stages, known as “draws,” as construction milestones are met. You’ll only pay interest on the amount drawn, not the entire loan amount.
Construction Phase: The construction team builds the property according to the approved plan, and we monitor progress and disburse funds accordingly.
Project Completion & Exit: Once construction is finished and the certificate of occupancy is issued, the loan matures. You have clear options:
Refinance: Secure long-term financing (e.g., DSCR loan) based on the newly completed property’s stabilized value and rental income.
Sell: List the property, repay our loan in full from the sale proceeds, and realize your profit.
Renew/Extend (if applicable): Discuss potential short-term extensions if needed for lease-up or sale (subject to terms, or pay off the loan in full.
Construction loans offer several benefits to investors, including:
Why Partner with a Private Lender Like Us for Your Construction Loan?
The Bottom Line for You, the Investor:
Our private construction loans provide the essential, efficient capital bridge between acquisition/ completion and your profitable exit strategy (refinance or sale). We empower you to leverage your expertise and equity to maximize returns on your development and rehab projects, without the constraints of traditional bank financing.
Ready to Build Your Next Success Story?
Contact us today for a confidential consultation. Let’s discuss your project blueprint and how we can structure the financing to help you achieve your investment goals.
Investors-Lender – Financing the Foundation of Your Investment Success.
Construction loans are specifically tailored to finance the construction or renovation of investment properties, providing investors with the necessary capital to complete their projects. At Investors-Lender, our construction loan rates start at 11.29%. Our land and construction loans are typically used to finance both the purchase of the land and the construction of a new property. Reach out to one of our loan analysts to get the most up-to-date information on our loan programs, rates, and requirements. They will guide you through the application process and support you every step of the way.
LOAN CRITERIA
