Financing for real estate projects can be a mammoth task to undertake. Even more is it difficult when it comes to financing for construction loans. For many money lenders, they consider construction loans as highly risky and they take the time and effort to closely look at each detail of the project before they ever make a decision to finance the project.
With most hard money loans, the loan amount is based on the lot value combined with rehab or construction cost. With this kind of loan, there is no minimum credit score. But it must be noted that experience is essential with this kind of loan. We are willing to fund up to 60% of the fund of the land value and 100% of the construction budget.
As an investor, it is expected that you know how crucial a quick close can be. In real estate investing, deals move quickly. Hard Money Lender IO has closed loans in as little as 48 hours, and have an average close time of 10 days, unlike a conventional loan which takes a minimum of 60 days to close.
If you are a borrower that is looking to get a loan for your new construction, you must be ready to schedule and plan your times because the time consumed can cause delay for your project. Also, this can be quite costly in the sense that meeting deadlines to acquire the property or having additional project expenses because of the delay that’s incurred on your project.
Unlike a conventional loan, significant amount of paperwork is not required here. The documentation here is relatively light. You just have to complete the loan application and the loan officer will review the deal with you and order an appraisal if the deal fits.
The underwriter will pose certain question about your experience as well as request copies of the construction plan and other relevant documents. From that point, Hard Money Lender IO will issue a written term sheet that outlines all the loan’s details so there are never any hidden fees. The loan then moves to the next phase of processing where the few required documents are collected and ultimately the loan is closed by an attorney.
Traditional loans can take several months to close. We can do it in few days.
We allow investors to arrange and secure funds that are not available to them through other institutions.
Constructions investments at interest rates starting at 9% with 0-2 points, and repeat borrowers receive preferred pricing. Loan amounts range from $100,000 to $5,000,000