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Southern California Hard Money Construction Loans
We have some great products for Southern California hard money construction loans rolling out. We've found an influx of clients contacting us for hard money construction lending lately. While the real estate market is strong right now, institutional construction lending seems to be tightening up with increased cash requirements and delays.
Our construction and construction completion loans typically look at the as complete value rather than a cost to build ratio. While on ground up construction projects we would prefer to see 30% of cost in, we do have options that can reduce that number - sometimes to as low as 15% of cost required.
This is especially true on a construction completion project, or a ground up construction project where plans and permits are in hand and the client is ready to break ground.
Typically speaking our construction based loans are structured to have both a fund control account and an interest reserve set up. On a ground up construction the fund control typically will run through a third party that will take care of inspections and approvals on the release of funds. For rehab and construction completion projects, the structure of the fund control can have more flexibility.
The interest reserve ... more
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