Rehab Financial Group, LP’s Post

Just got a call from this group, needing to get capital out. Debt Type: Construction, Fix n flip, A&D Properties: SFR, MF, land development, MHP Size: $500,000 – $20,000,000 Loan to Cost: Up to 85% Amortization: IO Term: 6 months – 24 months Rate: 8.5-12% Fees: 1-3% Equity Size: $100,000 – $2,000,000 Target IRR: 20-25% #CRE #RealEstate

Look under the hood of our latest development deal. The danger with underwriting is that some details can be tweaked to overstate the upside. Our investors seem to appreciate that we go out of our way to manage the downside. The unique situation here is that we have 6 developments already underway in this market, so we have real-time data on construction costs, the actual timelines, the leasing process, and rental revenue. With projections penciling out to a 20.9% - 21.5% Average Annual Return, it makes this a safe and attractive play. You can see for yourself. 00:55 - Phase 1 progress & No-Frills Model 3:26 - Initial assumptions (inc. loan rate) 4:34 - Extra value-engineered units 5:38 - Construction costs 7:55 - Leasing flexibility 9:31 - Timeline & return projections Learn more about the deal by visiting our website: https://lnkd.in/gQtC7EwN

BRIDGE FINANCING on BUILD TO RENT and MULTIFAMILY: We are seeing some very attractive bridge financing options for build to rent developers once the product is completed but not fully leased. This allows for some savings from most construction loans taking the sting out of construction loan rates during lease up and providing some cheaper runway. Some options: - Five year Treasuries plus 215 bps spread ( approx. 6.5% rate today) - Fixed rate that comes with prepayment penalties but it is assumable. - Floating rate at SOFR plus 275 bps spread (approx. 8% rate today) - No prepayment penalties and will obviously decrease with any rate cuts (if they ever come to be). Reach out to discuss. #BTR #BuildtoRent #CRE #Finance

What's Working in CRE? Construction loan financing is getting done in this "Higher for Longer" interest rate environment with a high 5.3% SOFR. The following is just one of several high-rise, mixed-use towers in South FL attaining construction financing highlighted by Connect CRE - BUT ... look at some of the terms (50% preleased) and the who (Bank of Ozark and not your traditional big banks). #cre #ccim #sior #naiop #trepp #uli #commercialrealestate https://lnkd.in/g2Z_PFE5

Featured Loan! In June 2022, the borrower acquired a nearly 4-acre lot and initiated the process to change its zoning from residential to industrial, addressing the growing demand for industrial space in the area. During the rezoning efforts, local regulations allowed for the construction of one of six planned industrial storage warehouses. In 2023, the #borrower successfully built a 5,000 SF facility, which is currently occupied by a market-rate tenant. To support the borrower’s ongoing project and their commitment to construct additional warehouses, Enact Partners provided a #bridgeloan. This #financing gives the borrower the necessary time to secure approvals for the remaining five industrial storage buildings. Once approvals are obtained, the borrower plans to secure vertical construction financing, which will be used to repay our loan. #DirectLender #PrivateLender Learn more - https://hubs.li/Q02Rp_8h0

Construction Loans And Exploring Alternative Financing Options: Whether you're planning a renovation, starting from scratch with a new build, or venturing into an ambitious architectural project, finding the right financial backing can make all the difference. Let's look into some alternative routes to fund your construction ventures. Renovation Loans: Refurbish with Financial Ease Renovation loans are tailor-made for those looking to breathe The post Construction Loans And Exploring Alternative Financing Options appeared first on ED CURRIE. http://dlvr.it/T6M6bN

When sectors experience heightened demand, lenders are presented with two primary options: 1) Invest in bridge loans on existing assets with compressing returns 2) Construct new buildings supported by robust sector liquidity At Heitman, we have strong conviction in construction lending, a strategy we've successfully employed throughout our tenure as debt investors. By financing new assets, lenders can access in-demand products at a basis significantly below replacement cost. In today's market climate, we're identifying opportunities to secure positions that were historically capitalized with senior debt, offering reduced risks and more favorable pricing. Now is the time for value-add real estate investing, learn more: https://bit.ly/3SGqurA

📚💡 Investor Tip: Diversify your portfolio! Adding multifamily properties or new construction projects can spread risk and increase returns. Need financing? Corridor Funding is here to help with a range of loan options. Give us a call or text at (888) 926-9230 #InvestorTips #Multifamily #RealEstateInvesting #PrivateLending #DSCR #NewConstruction #FixandFlip

Financing #modularconstruction differs significantly from traditional #construction and requires understanding how lenders view this construction type. The loan approval process, interest rates, and disbursement of funds may differ, and Dean Dalvit breaks everything down – with case studies! – here: https://lnkd.in/gxTqhFQ2

Considering a new construction project? Dive deep into the world of construction loans with ACOM Capital! Our specialized financing solutions are tailored to empower developers at every stage of their journey. Whether you're planning residential, commercial, or mixed-use projects, our flexible terms and expert guidance can help turn your vision into reality. Learn more about how ACOM Capital can support your next big project in real estate development. Read the full article here: https://bit.ly/3RVZCU7 #constructionloans #realestatedevelopment #acomcapital