Construction Loans: Commercial Lending USA has a solid track record in sourcing construction and development loans in Sydney, Melbourne, Brisbane, Adelaide, Adelaide, Canberra, and other locations for projects. We have access to capital from all banks and a wide range of other funding sources. Our team has extensive experience with projects up to $1.5BN in GR. A mezzanine, a subordinated debt or preferred stock instrument, is a claim on an asset that is not equal to the common shares. You can structure mezzanine financing as either debt or preferred stock.
CONSTRUCTION LOANS- Majors
Prices from $2-500+ Million
Limitations on facility size up to 70% LVR
Maximum Loan to Cost Ratios of up to 80%
Bank margins start at 1.50%, with line fees starting at 1.50%
Non-bank funds start at 6.75%, with a 1.5% Estab
There are no presales requirements on approved projects below 60%
STRETCH SENIOR CONSTRUCTION DEBT
Usually, $5 to 50 million
Maximum Loan to Cost Ratio: up to 90%
Margins start at 2.75%, and Line Fees start at 2.75%
For suitable projects, there are no presales costs and lower construction costs.
MEZZANINE DEAD
Usually, between $2 and $15 million
Maximum Loan to Cost Ratios of up to 90%
Margins starting at 12%+
For larger transactions, the Est Fees to 2%
DEVELOPMENT SITE FUNDING
Typically, $1,000,000 to $50,000,000
Limits on the facility are generally 65% LVR, but we have provided LVR up to 80% in some instances.
Major Bank Margins start at 1.50%, with line fees starting at 1.50%
A private lender is a non-Bank option. The cost of funds is usually 7.95%pa
Recent Example – No presales construction Sydney Project: 111 apartments
LVR: 60% of the GR
Presales: Nil
Maximum Loan Amount: 42M
Commercial Construction Loans to Help Your Growth
Business investors can get funding through commercial construction loan in either a lump sum or a credit card. Your company will repay the borrowed funds over time and any fees or interest. Based on the nature of the commercial loan, your lender might require monthly, weekly, or regular payments to repay the loan.
Contrary to most mortgages that require the borrower to get the total amount upfront, installments as the project progresses. Your mortgage company will almost always require you to have an investigator verify each stage of your construction progress before they issue the next loan portion.
What we offer
Real estate development financing collects funds from stockholders or property developers. As the name implies, commercial funding allows investors to borrow money from outside sources to purchase or construct a property. There are many options available for real estate financing, but most fall under the debt or equity category. Both equity financing and debt financing have their advantages and disadvantages.
Commercial Lending USA has a track record of providing construction and expansion loans for projects in Melbourne and Brisbane. We can arrange funding from any bank as well as other sources. Give us a call.
Factors to consider when obtaining a commercial construction loan
Here’s how to apply for a commercial construction loan:
Commercial construction loans underwriting
The borrower will review your mortgage application immediately after it is published. This evaluation will help determine whether to proceed with the loan. During this evaluation, the mortgage company will examine the project budget, forecasts, and underlying assumptions, as well as the professional experience of the developers.
Lenders may offer you a loan sheet if they want to continue the venture. After the loan agreement is approved and evaluated, the lender will authorize total financing. A construction loan does not have a functioning background, which is one of the main differences between a commercial loan and a property investment loan.
Therefore, the property’s value by pro forma real estate. However, the loan approval process is the same as commercial loans for all parties due to the increased risks involved.
Closing and loan approval
After you have committed, a closing checklist. Lists the steps before funding can begin and closes the loan. The following funds will be according to a schedule that covers all costs.
Although interest charges can vary in many ways, they tend to rise in direct proportion to credit risk or potential cost. The mortgagee will pay more if the lender is at greater risk or leverage. The financing costs are affected by the borrower’s credit score, working capital, expertise, and other factors.
It cannot be easy to get commercial construction loans. Understanding how lenders assess them is essential to help explain the funding process. Commercial Lending USA focuses on commercial construction loans and related development loans. If you have any questions or need credit, call our loan specialists today!
FAQ
What is Asset Refinancing?
Asset refinances when a company needs to access funds tied in with equity in an asset or multiple assets such as a costly machine or fleet of vehicles. While most of the funds are raised this way against assets a company already owns, it is possible to arrange asset refinance on assets still under finance as long as existing debt has. It quickly identifies the collateral you use to secure credit against your equity assets if you plan on using them as collateral.