Construction Loans
Expand to new territory, create additional workspace, or update standing structures to suit your business goals with a construction loan. No matter the size of your project, we’ll help your business secure the funding it needs at the right rate.
What is a Construction Loan?
The best way to customize any workspace is by building it your way. Business buildings, multifamily apartment complexes, and hotels and manufacturing facilities all require some level of customization to gain the most from your investment. You can start construction on a new building or renovate an existing structure for your business with the help of construction loans.
We’ll connect you with a lender who will review your construction plans, contractors, and financial records. Then, you’ll work together to establish milestones for your project. Funding for each milestone is released when the previous step has been compelted. If unexpected delays cause hiccups in your plan, you’re only responsible for repayment of the funded milestones. With a traditional loan, you could end up paying for the full project whether it’s finished or not.
Term to Perm Financing
Construction loans are traditionally structured as a term loan. During the project, developers pay interest only loans, and upon completion of the project, the total balance of the loan is due. For construction and development firms that build to sell and who can attract buyers before completion of a project, this is an ideal scenario. But for businesses that are builder-operators, they need another option.
Construction to Permanent financing solves the refinancing problem up front. Secure rates and know how construction costs will impact monthly payments from the outset. Avoid the rush to secure financing and the challenges that can occur if market conditions shift during construction.
Investment Properties
Hotels, apartments, retail centers, and office buildings can all generate income from tenants. Build investment properties that enhance your business portfolio by connecting with a construction lender in our network.
Fix & Flips
The fast-paced world of renovation and resale can be exciting and lucrative. Finance reconstruction and repairs with a simple loan from our lenders. Then, sell to a great buyer and start your next project.
Owner-Occupied
Special financing options are available for businesses that build space for their own operations. Use the entire building yourself or rent up to 49% of the usable space to earn income from tenants.
Advantages of Construction Loans
- Pay only the interest until construction is complete.
- Funding by milestone limits liability if the project is stalled.
- Rollover to long-term financing.
- Start from scratch or renovate.
Frequently Asked Questions
When is a Construction Loan not a good fit?
Construction loans can be interest-only loans during the life of the project. However, once the project is complete, it can be difficult to provide a lump sum payment on the principal. We can help roll your construction loan into a long-term financing solution.
Who uses Construction Loans?
Corporations and other business entities seek construction loans so they can take on large-scale building projects. However, small businesses can also utilize construction loans to make renovations or create a storefront.
Where can I find the best Construction Loans?
Shopping around for construction loans is no fun, especially when you have a business to run. That’s why we partner with a vast network of lenders who know the ins and outs of construction. We’ll do the shopping for you and match you with the right loan for your project.
Why use a broker to find Construction Loans?
Most businesses have neither the time nor the need to form long-term lender relationships. Brokers invest this time to build strong relationships with lenders who can offer the best financing for any business need. This way, you can meet with one professional who can supply a range of options.