How to get a Construction Loan

Title of Presentation

How to get a Construction Loan

1. Identify the property that you are interested with. You may:

Write an offerAlready have the property (you

already own it or a partner owns it)

2. Get the financing so you can build your house or apartmentsOur company usually get involved

right around when:the plans are done

you have submitted them you’re going to get all your permits and you’re going to get what we call

shovel ready

How to get a Construction Loan

The difference is that sometimes we help and we’ll do an acquisition loan

We do acquisition type loans that lead into a construction loan.

Those type of deals we structure them first as the purchase money deal and then we’ll usually do a second deed of trust, which is the construction money. But that’s after the plans get approved through the city.

Are the requirements more stringent, less stringent with a construction loan?

Difference is, there’s hard money construction loans, there’s regular construction loans through a bank

Spec - means a contractor, and investor is basically building on speculation, they’re building to sell for a profit

Through Bank:

In the spec world , these types of loans are very difficult in the market right

now to get funded by any banks. Banks are starting, finally, to loosen up and

lend a little bit more in the construction world, but it’s still very difficult

Through Hard Money:

we’re not so driven on having a 750 credit score and fully document everything; ,

we do require tax returns and bank statements and a credit report—but we look

at the overall project. we put more weight on the project as

opposed to the individual

Through Hard Money:

overall, it’s more like, we underwrite almost like a commercial property. Where the property needs to really be able to take care

of itself we also do a future value appraisal

based on the plans of the property. And we’ll go up to 65% of the future value

Beau Eckstein

Direct: 925.852.8261

Managing Partner

SFR Ventures Inc.

BRE #01307829