Rich Coppage's Blog – November 2014 Archive (2)

Cressida Capital Provides $2.75 Million Bridge Loan

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Added by Rich Coppage on November 28, 2014 at 3:21pm — No Comments

How Are Commercial Construction Loans Underwritten?

Here is how commercial construction loans are underwritten.  The first test is the profit test.   Will your finished project be worth more than it will cost to construct?  Most lenders will require at least a 20% profit margin.

 

A related test is the loan-to-value ratio.  After the project is completed and, say, your strip center is occupied, will the construction loan be less than, say, 75% - 80% loan-to-value. 

 

Commercial construction lenders often will not…

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Added by Rich Coppage on November 18, 2014 at 1:01pm — No Comments

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