Real estate investors looking to build residential or small multifamily properties from the ground up need financing that is both flexible and efficient. Ground-up construction projects require careful planning.
We aim to be transparent with our loans and process, so here are five important things to know before embarking on one of these projects in partnership with Certain Lending:
1. Higher Leverage, Less Cash to Close
One of the biggest advantages of working with Certain Lending is our ability to offer 85-90% of total project cost for experienced builders—far higher than the 70-75% typically offered by conventional banks. This means less cash required upfront, allowing investors to take on more projects or allocate capital elsewhere.
Additionally, for Ground-Up ADU (Accessory Dwelling Unit) projects, we can use the equity in the land as the down payment, further reducing the cash needed to close. This flexibility makes it easier for investors to break ground without tying up significant capital.
2. Fast Closing in Just Two Weeks
Time is money in real estate, and long closing times can put deals at risk. With Certain Lending, investors can close in as little as two weeks, significantly faster than traditional lenders. This speed allows builders to lock in deals, secure contractors, and move forward without delays that could increase costs.
3. 100% Financing for Construction Costs
A major benefit of our ground-up construction loans is that we offer 100% financing of the construction budget. This includes funding for:
- Materials
- Labor
- Demolition
- Customary soft costs
By fully covering construction costs, Certain Lending helps investors maximize leverage while keeping more capital available for other opportunities.
4. Efficient Draw Process: Get Your Funds in 24-72 Hours
Managing cash flow is critical in a construction project, and our fast draw process ensures that funds are available when you need them. Unlike traditional banks that can take weeks to process draw requests, Certain Lending funds draws within 24-72 hours from the date of inspection. This keeps your project on track and prevents costly delays.
Our streamlined process includes live remote inspections, making it even easier for real estate investors to access their funds quickly.
5. Expert Client Service for Seamless Closings
Construction loans can be complex, but our loan officers are former contractors, architects, and real estate investors -- who are on your side to close with ease. We've financed over $1 billion in mortgages to real estate investors and understand the unique needs of builders and investors. We’re here to provide the guidance needed to navigate financing successfully.
Final Thoughts
Ground-up construction requires the right financing partner—one who can offer higher leverage, faster closings, full construction financing, quick draw funding, and expert service.
If the above criteria sounds like a fit for your next ground-up construction project, contact us at (206) 237-0105 or submit your deal in 3 minutes for a quote.
