Regardless of the state of the real estate market, builders and developers need capital to fund their projects. But over the last decade, changes in regulation have only made it more difficult to acquire private real estate loans through traditional lenders in a timely manner.
As a hard money lender, Advest Funding offers the solution: quick and flexible private loans for borrowers who want to start building, buying, and selling properties.
Private Construction Loans for Builders and Developers
If you have experience in the construction industry, you're aware that private money lenders have a longstanding history of working closely with builders and developers. At Advest Funding, our speed and flexibility have been the key ingredient to many successful projects.
One of our most popular offerings is the ground-up construction loan.
A ground-up construction loan is a type of loan we provide to builders who are planning a new residential or commercial building project. These private money construction loans are for business purposes and are for builders and developers who will later sell or refinance the property once it's completed.
The Benefits of a Ground-Up Construction Loan for You
The main benefits of private construction loans from hard money lenders like Advest Funding are speed to close and flexible underwriting.
As traditional lenders, banks require prospective borrowers to go through a long and arduous application process which can often take several months to conclude. Conversely, private loans from a business like our own are asset-based and require far less documentation and time to process. Where banks take months, we usually close and transfer funds in the span of a couple of weeks.
Due to circumstances in the market, the construction industry is constantly fluctuating. Banks find themselves bound to strict loan guidelines. Hard money lenders like Advest Funding can structure deals that are mutually beneficial to both borrower and lender. We have found that greater flexibility usually results in better outcomes for everyone involved. Moreover, lenders like ourselves can adjust our draw schedules and adapt our offerings as the situation demands.
How the Construction Draw Process Works
When you receive a construction loan from Advest Funding, funds are disbursed in "draws". We coordinate these draws with the different phases and financial requirements of the building process. In a majority of cases, we fund up to 75% - 80% of the land at purchase and then 100% of the construction costs.
During the underwriting phase of the private loan, builders and developers provide us with the scope and budget of the project they've planned, how it breaks down into phases and the cost of each of these phases. We call this the draw schedule.
As each phase is completed by the builder, we order an inspection from a third party who visits the property and verifies that the agreed-upon work has been completed. Once the inspection report is issued, we reimburse the borrower for the amount that has been outlined. In total, the entire process typically takes no more than 3-5 business days.
What Distinguishes Us As Private Construction Lenders
Whether you're a builder, developer, or real estate owner, you want to work with a lender who can act quickly, close quickly, and issue funds backed by their own capital. A hard money lender like Advest Funding can make the entire loan process easier and more straightforward for you.
We pride ourselves on our high degree of transparency. In our business, it's all too common for lenders to advertise interest rates that they don't actually offer in lending situations. Before all parties move forward, always issue a clear and concise term sheet that outlines the terms of the loan.
Being intimately familiar with the Bucks County, PA area, we have the local touch other lenders lack. With our understanding of the market, we move faster, nurture stronger relationships and save you time and money in the end.
Unlike other lenders, we never charge an upfront fee before we approve your loan. Apart from an appraisal, which is customary for borrowers to pay, we do not ask for any money upfront.
Get a Ground-Up Construction Loan from Advest Funding
Call us today at (215) 550-1322 to discuss a private construction loan. Our team will speak with you to learn more about your current project, budget, and plans for the future.
At Advest Funding, our team makes ground-up construction loans easy for real estate investors and developers with quick closings, flexible underwriting, and the utmost professionalism.