Construction financing can be overwhelming, especially for new borrowers, so there are some things to keep in mind.
Construction is a field that requires an understanding of the entire geographical market as well as specialized know-how for construction of individual asset classes.
Arranging construction debt becomes far more granular as sub-markets have their own occupancy trends, cap rates, absorption rates, concessions, and much more.
Financial modeling for construction loans becomes even more nuanced when calculating IRRs based on various exits, stress-testing permanent debt, and creating an efficient capital stack.
Everyone from FHA to life companies to banks play in the construction space in one capacity or another and when it comes to arranging construction debt, the diversity of relationships is as important as the depth of them and the experience of the advisor running lead on the transaction.
An easy way to avoid the hassle and find the right lender is to try going to a company like Janover Ventures which is making business and commercial real estate financing a breeze.
They’ve got partnerships with lenders across the nation and would be able to find the perfect match for your needs faster than you’d think possible.
See for yourself how easy they’ve made this process for borrowers.
Courtesy of alternativesmallbusiness.fund