Are you a real estate investor looking for an efficient way to maximize profits? Ground up construction loans offer an alternative to traditional mortgages and are becoming increasingly popular. Quick Real Estate Funding is one of the lenders offering these types of loans with a streamlined process.
Ground-up construction loans may be the perfect solution for your needs. They allow developers and general contractors to borrow money to complete the building process from start to finish. With this type of loan, you’ll enjoy access to funds that are necessary for completing a successful project.
What is Ground-Up Construction Loans
These loans are used for buying land and covering the costs of construction with loan terms up to 12-24 months. Ground-up construction loans differ from traditional mortgages in that they come with higher loan to value, different repayment structures, and can close in a matter of weeks instead of months. The loan terms are generally based on certain factors such as experience, return on investment and creditworthiness of the borrower. These loans don’t require income verification or no tax returns, just proof of reserves for the downpayment, closing costs and nine months of reserves to cover the interest only mortgage payments.
Benefits of Ground-up construction loans
You can reap countless rewards when you take on a ground-up project, from building equity to making double digit return on investment. One of the main benefits of taking out a ground-up construction loan is the secured funding it provides. You’ll have access to funds that can help with upfront costs, purchase materials, and more so that you can complete your project without worrying about running out of money mid-way through.
Ground-up construction loans are interest only with loan terms 12-24 months. Risk mitigation is another key benefit as these loans reduce the amount of financial risk involved with undertaking such large projects since they are backed by collateral like real estate not the borrower’s personal income. Finally, having access to secured funding allows for better project planning since you know exactly how much money you have at any given point in time throughout the process.
It’s important to get advice from Quick Real Estate Funding when exploring different options to properly assess the financing needs for your project. We have a wide range of products available to investors that can help them manage their financial risks while maximizing their returns.
Applying for Ground-up Construction Loans
Ground up construction loans are the perfect option for real estate investors looking to get into the game. They provide access to funds that cover not only costs of construction, but also purchase of a property.
Applying for these loans is slightly different than applying for an owner-occupied mortgage. Each lender has their own process and guidelines when it comes to loan applications, so make sure you understand what you need before beginning the process. Additionally, some lenders may have hidden repayment requirements in the fine print – be sure to read through any agreements carefully before signing anything! Once your project is complete, you’ll likely want to refinance into a 30-year loan if you decide to keep it as an investment. Quick Real Estate Funding has one of the highest loan to value for refinance cash out.