Subdivision Development Loans:
Presenting the swift and effective funding solution for subdivision projects from NewRepublicFunding.com
Your perfect partner in accelerating your construction dreams!
Speed and efficiency are paramount in the fast-paced world of development in 2023. NewRepublicFunding.com understands this crucial need. That's why we've developed a streamlined financing program to kickstart your subdivision development project in 21 days or less.
If you're an experienced developer with a portfolio of successful projects, we invite you to explore our unique funding approach. We structure your deals into tranches, creating a balance that safeguards capital while offering cost savings through interest applied only on specific tranches. With our flexible structure, each closing typically encompasses 8-10 home starts, with an upper limit of $3,000,000 per tranche.
Prioritizing profitability, NewRepublicFunding.com seeks deals promising a projected profit margin of 20% or higher, factoring in acquisition costs, soft and hard construction.
From projects encompassing 3 to 40 starts, NewRepublicFunding.com is your partner for subdivision development. For larger scale projects, we suggest breaking them into manageable phases, each hosting no more than 40 starts, and tranches of 6-10 starts at a go. Our expert team is committed to working closely with you, ensuring an optimal balance between project starts, the NRF funding matrix, debt servicing, and liquidity, thus reducing interest costs and minimizing risk.
With NewRepublicFunding.com, loans are tailored to your project's needs, covering vertical, select soft and horizontal costs, and a portion of land acquisition within the parameters of our Loan-to-Cost Matrix. Typically, the final loan amounts span between 65% and 80% of the total projected cost of your development.
No longer should financial barriers stand in the way of your subdivision project's success. With NewRepublicFunding.com, access swift, customized funding solutions that bring your vision to life.
Contact us today to discover more about our Subdivision Development Loan and discuss how we can support your project needs.
NewRepublicFunding.com: Your success is our blueprint.
Please submit the executed application form email@example.com to begin the application and intake process.
- or -
Please feel free to contact our office at 877-783-2196
Subdivision Loan Metrics:
**Loan Size**: We're ready to support your venture with financing ranging from $500,000 up to a maximum of $25,000,000.
**Lien Position**: We take the first lien position without allowance for subordinate financing.
**Interest Rates**: Expect annual rates from 11.49% to 12.49%.
**Origination Points**: Our points fall between 1.75% and 2.5%.
**Broker's Points**: Should a broker be involved, they can receive up to 2%.
**Loan Term**: Our terms span from 12 to 18 months, with the possibility of 2-3 months extensions for just 1% of the loan balance.
**Prepayment Penalty**: None whatsoever! We value your financial freedom.
**Exit Fee**: We charge no exit fees.
**Appraisal**: Costs will be determined based on current market pricing.
**Projected Closing Timeline**: We're all about speed! Expect to close the escrow in 21 days or less.
Required Documentation:For Sponsors (Any individual with a stake exceeding 10% in the company):
1. A thorough Personal Financial Statement
2. A copy of your ID or Driver's License
3. Asset Statements for the last three months
4. Your Real Estate Resume detailing your deal history
5. Your REO (Real Estate Owned) Schedule
For the Business Entity:
1. Your company's Articles of Formation or Incorporation
2. Your company's EIN (Employer Identification Number)
3. The Operating Agreement or Bylaws of your company
4. A list of partners or officers
5. Your company's Certificate of Good Standing or Business License
For the Subject Property:
1. An Executive Summary detailing the sources and uses of the deal, construction costs segregated into hard and soft, along with vertical and horizontal, timelines, cost per square, and forecasted resale values. Details about varying finish or modeling options, along with the expected finishes.
2. Financial Projections showcasing the cost versus the resale value. Projections must factor in a profit margin of over 20% for resale or a Debt Service Coverage Ratio of 1.25 for a rental.
3. Your project's Plans and Renderings.
4. The property's Plat of Survey.
5. Any relevant HOA (Homeowners Association) documentation (if an HOA is planned).
6. A quote for Builder's Risk Insurance and Commercial Liability Insurance, ready to bind at the close of escrow. Please include your insurance agent's name, phone number, and email address.
7. GC (General Contractor) Construction Budget in NRF Template.
8. Projected GC Draw Schedule.
9. GC License, Bond, Insurance, and GC Contract to Build.
10. Environmental and Engineering Reports.
11. Contact information for your Title/Escrow representative, including name, phone, and email.
12. Contact information for your Real Estate Attorney.
13. An Executed Purchase Contract along with proof of Ernest Money Deposit or the HUD-1 from the acquisition.
This extensive list ensures a thorough application evaluation for a seamless and effective financing experience.