New Construction Loan Program
New Construction Loan
- Shifting markets create opportunity & New Construction. Considered as the “pinnacle of real estate investing”, New Construction offers the opportunity to leave a lasting imprint on the community that you are investing in.
- A commercial construction loan is essential for developers aiming to break ground on new projects, offering the upfront capital needed to cover land acquisition, permitting, and construction costs.
- This type of loan facilitates the realization of visionary projects, enabling the transformation of ideas into tangible assets that can generate significant returns upon completion.
- It allows developers to leverage financial resources efficiently, spreading the cost of construction over time and minimizing initial out-of-pocket expenses, thus maximizing investment potential and operational cash flow.
NEW CONSTRUCTION
Interest Rate:
Rates Starting at 10%
Experience Requirements:
Strong credit, liquidity, 5+ successful multi family projects valued at $25 million or more per project.
Limitations:
Property Type:
Multifamily, student housing, affordable, housing, single-family homes, condos/single-family homes built to sell up to $800k, senior living facilities, assisted living facilities.
Construction Minimum:
$25 million
Loan-To-Cost / Loan-To-Value:
100% LTC, and 100% LTV
Frequently Asked Questions
This loan provides investors with the resources necessary to acquire an existing property and funds to build an entirely new structure. This product can be utilized in a wide range of areas from deep urban to suburban, and provide a new way to approach your next successful investment. This loan typically requires previous new construction experience, and a recent history of completed projects.
Capital Max™ has a Capital Raising program in place to assist with specific projects and deals. Inquiry directly for more information.
Prospective borrowers frequently ask about the draw schedule, which refers to the manner and timing of loan fund releases. These disbursements are typically made at various completion stages of the project, requiring inspections and approvals, to ensure the loan funds are used appropriately throughout the construction process.
Many are curious about the transition from a construction loan to a permanent mortgage. This often involves understanding the terms for converting the construction loan into a traditional, long-term financing solution, the interest rates applicable, and any additional requirements for this conversion process. Capital Max has a program for this called Construction to Perm.