Construction Loans

[bbrunelleb 0]

Hi All,

I have an offer to invest in building 2 homes on vacant lots in Melbourne, Fl. Can anyone tell me what it takes to get a construction loan. I have the assets but dont want to use my cash.

Bill

[Richard Cooper 0]

Bill, San Jose Investment Corporation recently introduced a construction loan program specifically for investors/builders. The Program is handled by San Jose's own Managing Partners and you should visit www.sanjoseinvestment.com and select "Managing Partners" for your closest contact.

 

This Program is offered in FL, GA, SC and NC. I am not aware of ANY construction lender willing to risk 100% participation in funding. We will go into a deal with 80% of the combined cost of lot added to actual cost of construction.

 

The investor/builder has got to have a 20% equity position. In some cases where the applicant has owned land for some time and the property is free-and-clear of liens and mortgages the value of that asset could well equal/exceed the 20% required by us.

 

We will lend on "spec" as well as Builder Pre-sold deals. Min loan is $100,000 up to $250,000 including land cost. Up to two construction loans per borrower at any one time.

 

We can even advance up to 75% of lot purchase cost ahead of permits being pulled.

 

Loan term is 9 months with up to three one month extensions possible. If investor is the borrower, he/she needs to have a contract in place with a licensed home builder.

 

Loans must be for conventional "site built" construction since we do not accommodate modulars at this time.

 

In addition the lot MUST be in an improved sub-division or an approved suburban "infill" lot with public water/sewer hook-up available in the street.

 

As a side-note, please be aware that San Jose Investment is the S.E.'s leading provider of short-term purchase/Rehab and "Fix 'n Flip" loans with loan amounts from $50K up to $1,000,000. Loans based on up to 75% of AFTER REPAIRED value.

 

Hope this info is helpful

Richard Cooper

coopercash@earthlink.net

[bbrunelleb 0]

Bill, San Jose Investment Corporation recently introduced a construction loan program specifically for investors/builders. The Program is handled by San Jose's own Managing Partners and you should visit www.sanjoseinvestment.com and select "Managing Partners" for your closest contact.

 

This Program is offered in FL, GA, SC and NC. I am not aware of ANY construction lender willing to risk 100% participation in funding. We will go into a deal with 80% of the combined cost of lot added to actual cost of construction.

 

The investor/builder has got to have a 20% equity position. In some cases where the applicant has owned land for some time and the property is free-and-clear of liens and mortgages the value of that asset could well equal/exceed the 20% required by us.

 

We will lend on "spec" as well as Builder Pre-sold deals. Min loan is $100,000 up to $250,000 including land cost. Up to two construction loans per borrower at any one time.

 

We can even advance up to 75% of lot purchase cost ahead of permits being pulled.

 

Loan term is 9 months with up to three one month extensions possible. If investor is the borrower, he/she needs to have a contract in place with a licensed home builder.

 

Loans must be for conventional "site built" construction since we do not accommodate modulars at this time.

 

In addition the lot MUST be in an improved sub-division or an approved suburban "infill" lot with public water/sewer hook-up available in the street.

 

As a side-note, please be aware that San Jose Investment is the S.E.'s leading provider of short-term purchase/Rehab and "Fix 'n Flip" loans with loan amounts from $50K up to $1,000,000. Loans based on up to 75% of AFTER REPAIRED value.

 

Hope this info is helpful

Richard Cooper

coopercash@earthlink.net

 

 

Hi Richard,

I totally appreciate your detailed information. If some things develop for me I will be back in touch with you.

Thanks,

Bill