Myers Capital is proud to be a dependable, supportive, and consultative partner for real estate investors. We help investors not only purchase existing properties and accomplish other key real estate goals, but build new investment properties from the ground up as well.
What is a ground up construction loan
Make the perfect project for the housing market you target a reality with a ground-up construction loan.
This financing option offers a single, short-term loan for all phases of new construction, with funding provided in stages as construction progresses. That makes it easier to bring your project to completion and put it on the market.
Costs covered by ground-up construction loans include:
- Purchasing the land, if needed.
- Project fees, such as permitting fees.
- Design costs.
- Materials.
- Labor.
BENEFITS OF GROUND UP CONSTRUCTION LOANS
What advantages do ground-up construction loans offer?
- Tap into the local market & Boost ROI: Bring new properties for sale or rent that are aligned with the needs and wants of the local housing market, boosting the return on your investment.
- Simplified financing process: Just one loan to complete your project, not several.
- No personal income verification: No tax returns, W-2s, or pay stubs required.
- Higher leverage: Finance up to 80% of your project.
- On-time closings: Close and get your project moving in as few as two weeks.
- Fast, reliable construction draws: Minimize risk and improve cash flow with draws on the loan as your project reaches key milestones.
- Seamless transition to long-term financing: Convert your ground-up construction loan to a permanent mortgage upon project completion – no need to refinance or secure additional financing.
THE CONSTRUCTION DRAW PROCESS EXPLAINED
Funds for ground-up construction loans are generally disbursed as draws as the project reaches key milestones, not as a lump sum.
As each milestone is reached, the contractor requests a draw. Then, the investor reaches out to the lender. Once the lender verifies that the requested funds and completed work are a match, the lender disburses the funds, and the investor makes their payments.
With Myers Capital as your financer, you can count on fast and reliable construction draws to keep your project on track.
Eligible Property Types for Ground-Up Construction Loans
Myers Capital offers ground-up construction loans for single-family homes and multi-family (5 units or more) properties.
Qualifying for a Construction Loan
In general, construction loans have different qualifications than mortgages. They usually don’t involve collateral from the borrower, nor do they require W-2s, tax returns, or pay stubs.
What do lenders like Myers Capital look for when approving borrowers?
- Strong credit history.
- Stable finances.
- Absence of major financial obligations relative to total assets.
- Established relationship and contract with a licensed, experienced, and qualified builder
- In-depth information about the project itself, including timelines, cost and pricing, the construction plans, and more.
Is a Construction Loan a Mortgage?
No, this type of loan is not a mortgage. While construction loans cover land and the construction process, they are not long-term financing. Funding is generally in stages (and not as a lump sum), often covering a period of 6-24 months.
However, some construction loans are designed to automatically convert to mortgages at the end of their terms. Real estate investors can also pay off the loan in full as its term expires or separately secure a long-term mortgage loan for the property.
Our experienced and capable team can help you find both the right construction loan for your needs and effective options for moving forward with long-term financing.
Choose Myers Capital for Your Next Construction Loan
At Myers Capital, our goal is always to bring you competitive terms and conditions, knowledgeable support, and informed guidance.
Our team has deep experience with construction loans, which we leverage for your benefit as a real estate investor. We can help you build a custom solution that aligns with your needs while providing fast approvals, a streamlined application process, and support throughout the process.
Start Your Construction Loan Application Today
Benefits of Bridge Loans
Real estate investors use bridge loans for several key reasons:
No Personal Income Verification
Tax returns, W-2s, or pay stubs are not required.
On-Time Closings
Secure financing and close in as little as two weeks.
Fast Access to Capital
Act quickly on time-sensitive real estate deals.
Overcome Lending Challenges
Capitalize on distressed or undervalued properties.
Access Equity Without Selling Property
Renovate, acquire, or reposition properties with ease.
Understanding Bridge Loan Rates and Terms
Bridge loans require an expedited timeline and can present additional risk to lenders as compared to many traditional loans. So, bridge loan rates tend to be higher than those of traditional loans as well.
These loans often also have unique terms, such as making interest-only payments during the life of the loan with a balloon payment at its end. Understanding the details of the loan terms is crucial to making an informed and effective choice.
The team at Myers Capital can support you in finding the right bridge loan, and the right rate and terms, for your unique needs! By taking a consultative approach and learning about your personal position as a real estate investor, we can help you find the loan that best aligns with your strategy and goals.
The Best Bridge Loan Lenders
If you’re a real estate investor looking for a bridge loan in Hawaii or across the mainland, Myers Capital is here to help!
From fast approvals to an efficient process and more than 25 years of lending experience informing our operations, we streamline the lending workflow while always prioritizing your needs. We offer bridge loans, along with a variety of financing solutions, for current and prospective investment property owners.
Let us help you find the best possible bridge loan for your real estate investment strategy. Reach out to us at 808-566-6611 for a no-cost consultation or contact us using the button below to get started!