© copyright 2024, All California Lending. All right reserved
Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
© copyright 2024, All California Lending. All right reserved
Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
We recently assisted a client with the funding of a Stanislaus County construction loan. Our client owned a parcel with an existing loan encumbering it. He had gone through the full entitlement process and was ready to pay for permits. We were able to structure a construction loan to payoff the existing loan, cover permit fees at close of escrow and provide a fund control for the ground up construction project.
The hard money construction loans we help with are typically based on the completed value of a property. We have options that can provide funding for up to 75% of the completed value. In some situations there can be a minimum loan to cost calculation, but in others the only concern is the loan to completed value ratio.
These loans are structured with a fund control account. Funds are disbursed as work is done. Typically these funds are disbursed in arrears on inspections, but we do have access to some funds that can disburse in advance, allowing for greater leverage.
In addition to a fund control account, this Stanislaus County construction loan had interest reserves built in. It is common for these hard money loan products to have an interest reserve built in, although not required. This allows a client to be able to focus on completing the project and getting it on the market for sale before any out of pocket payments come due.
For clients looking to build and hold, we have some longer term products that can take out the construction funding. These products are attractively priced and are specifically for investors. Documentation is light, and the main aspect of the underwriting is the loan to value.
We can help with hard money loans throughout the state of California. You can visit our local page for more information on our Stanislaus County hard money loans. You can also give us a call with your scenario. We are happy to discuss your project and work to help secure the funding you require. Call us today at 877 462 3422.
Chris Goulart specializes in creative private money solutions secured by real estate throughout California. The private hard money loans he works with are typically funded by individuals and groups outside the more traditional banking industry. He has specialized in private hard money loans for over a decade and is fully licensed both at the state level, through the DRE, as well as the national level, through the NMLS.
