Construction Loan - Do You Qualify?

DO YOU and YOUR PROJECT QUALIFY FOR A COMMERCIAL CONSTRUCTION LOAN?

TAKE THIS QUICK 3 MINUTE QUIZ AND FIND OUT

Have you developed a similar size project in the past 10 years, or several projects combined that equal the size of the project to be developed or do you have the ability to bring in a partner who has this experience?

Yes No

Have you done the necessary market research to determine that there is a need for your project?

Yes No

Do you have the down payment - a minimum of 20% of the cost of the project (including Land) in cash or in the land value or can you bring in investors to achieve this?

Yes No

Do you have a credit score of 680 or higher?

Yes No

Do you have at least 10% - 15% of the desired loan amount in post-closing cash or do you have a partner that has this if you do not?

Yes No

Do you have more than one sources of income or if not can you bring in a partner who can help you meet this requirement?

Yes No

Are you an experienced General Contractor or do you have one that has a good track record of building similar size projects and completing them?

Yes No

Have you completed an income and expense pro forma that shows that you have enough net operating income to support the payments of a permanent loan?

Yes No

Have you researched all operating expenses for the pro forma including taxes and insurance to know they are accurate?

Yes No

Do Market Rents in the sub market of the subject property support your projected rents on your project?

Yes No

Does the subject land parcel have roads to insure ingress and egress, and services at the site (utilities such as water, sewer, power) and if not do you know the cost to bring these to the site? If you do not know answer no.

Yes No

Have you estimated accurately the cost of this project including land, hard costs, soft costs, and financing costs? Should be based on a quote from a general contractor or a realistic cost per square footage.

Yes No

Based on Market Cap rates will the completed stabilized value of the property be at 75% loan to value or less?

Yes No

Will you meet a global ratio of 1.40? This means you show enough income on tax returns for the past two years to pay all your monthly expenses plus a margin of .40%? For example if your annual set bills total $100,000, do you have an additional $40,000 left over in net income?

Yes No

Are you confident that the city or county will approve your project or is it already approved?

Yes No

Are you confident that your project will lease up to 90% occupancy within 6 -12 months after you get your certificate of occupancy?

Yes No

Have you studied the competition? Is your project as good or better?

Yes No

Have you researched building starts to determine that there are not too many similar projects already being built in your sub-market?

Yes No

Have you calculated how long it will take to build this project and are you confident of this time frame?

Yes No

Do you have or will you have a solid team of professionals including, architect, engineer, property manager, real estate attorney, etc?

Yes No

Your RESULTS on Your Chance of Getting a Commercial Construction Loan:

Yes to 18 or more questions = Excellent

Yes to 15 or more questions = Good

Yes to 14 or less = Not Great (But we can help you Qualify) To view our 7 Construction loan programs Click Here Call one of our loan specialists who can assist you with strategy to make sure you and your project qualifies.