Bank loans are designed to be low-risk for lenders. They reduce risk with a long process, lots of red tape, and strict requirements about what you build and where you build it. If you’re putting together a large project, a bank loan could hold you back. Private lenders often have more experience in the local real estate market. They can quickly determine if a project is viable, without subjecting you to a lot of red tape.
- You have a need for speed. San Francisco is a real estate boom town. Developers compete over a handful of desirable properties and locations. After you find a property, you’ll need to get financing, and quickly. If your competitors get a loan first, they’ll get the property. To hit the ground running, know your financing options before you start looking for projects.
- Your Contractor Matters. When you spot a likely property, find a contractor who understands your needs and goals. A good contractor is more than a builder. He also understands the ins and outs of financing in California. He’ll be able to give you leads on sources for financing. He may know people who are willing to partner with you on the deals.
- A Bank isn’t always the best option.SFR Ventures Inc. offers private money construction loans. We have decades of experience in Bay Area construction and understand the market. As an experienced hard money lender, we’ll structure your construction loan so that you get the financing you need now and get a better return later on. Because lenders like SFR Ventures Inc. can work without red tape, they also have the freedom to create custom financing packages tailored to your specific projects.
- Be Prepared to Show Good Faith. No lender will invest in you unless you’re invested in your own project. Have documentation that shows your own investment in your project. You’ll also need a down payment or collateral to show that you’re serious about the loan.
- Use Your IRA Wisely. How is your IRA performing? If your mix of assets isn’t giving good returns, you might benefit from withdrawing the money and using it for the down payment on your construction project. Because real estate can offer such large returns, your large construction project might be a better investment than your current IRA.
If you have a large project and need specialized financing, SFR Ventures Inc. can help. We’re located and headquartered in Northern California, but lend throughout the state. Call Beau Eckstein at 925-852-8261 or visit http://www.reiloanpro.com/ to get started today.