Private Construction Lending

"It depends." Probably one of the most frequently used terms by attorneys, this is also a favorite variable of bankers when asked if they provide construction financing for residential 1-4 unit projects. One of the most noteworthy variables is the strength of the borrower, but what if there was a desire for the project to be funded less on the client's credit worthiness and more on the equity of the project?

Private money construction loans, like those from Showcase Investments, may be a perfect solution for these borrowers. For ground-up projects, private money lenders benefit borrowers by closing quickly, being written for up to one year, eliminating the need for HUD counselling and removing the need for providing tax returns. Their focus is on underwriting which 'makes sense'.

When the bank says NO or is just too slow, private money lenders are there to help clients get their projects funded, built and ready for sale or for take-out financing by a commercial institution. Which institution? Well, it depends.