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Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
We can help facilitate Marin hard money construction loans. Located in the San Francisco Bay Area, Marin is one of the more desirable locations. While the location is highly desirable, new construction can be a challenge to get local approval for. We have experience working with construction loans in Marin and understand many of the challenges developers and builders can face in this area.
Our recent funding was for two adjacent lots, ground up construction. The lots had been locked up under an option while our client got permits and approvals for the project. By locking up the land under an option in this manner he was able to save a substantial amount of money on potential interest carry for the 12+ months it took to get approvals for work to start. In addition, having plans and permits in hand can help us get more aggressive on the construction loan as it takes a large unknown out of the equation.
While having plans and permits in hand is not a requirement for our hard money construction loans, it is a benefit. The entitlement process is one in which our clients do not have a lot of control over. Oftentimes turn times are dictated by the local government, and estimated times are not guaranteed by any stretch. Having lengthy delays during the permitting process can really harm the long term profitability of a project due to the increased cost of debt service.
In this situation, we did not have to plan for an extended carry time for the loan. We were able to put a loan together that utilized a small seller carry back and the cash in from our client that was used for the permitting process to fund the balance of the project – plus interest carry. These hard money construction loans typically will fund up to 60-65% of the completed value. While we do like to see cash in from a client, we are able and willing to work with seller carry back situations, as well as gap funds, equity partner money and cash contributed towards the project to date.
If you have questions about Marin hard money construction loans, give us a call today at 877 462 3422. We are happy to discuss the options we can provide. You can find more information by visiting our page about California hard money construction loans.