CONSTRUCTION LOANS

WHAT IS A CONSTRUCTION LOAN?

          A construction loan is an interest only, collateral based loan primarily utilized for tear downs and new builds. They are unique based on the fact that most of your funds will be utilized building the project from the ground up new materials as opposed to fixing and updating an existing structure.

WHAT IS THE PROCESS OF OBTAINING A CONSTRUCTION LOAN THROUGH BLACK LABEL CAPITAL?

          Please contact us (phone, e-mail, facebook or chat) so we can discuss your project. The details of a construction project vary greatly from one project to the next. A simple residential property is much different than a multifamily project. Black Label Capital needs a little extra time to review the plans and appraise the value of the completed project. However, we will work as quickly as possible to provide you with the details necessary.

WHAT ARE YOUR LOAN TERMS?

          Interest rates can start at 7.99% and 2 points, 100% funding of construction costs and term length is typically 1 year. We also lend up to 75% of the land value. However, these terms are just a baseline and can fluctuate based on the specific project. 

HOW DOES THE PROCESS WORK?

          After the application is submitted, we get to work determining the value of the completed project. We decide how much we can lend on the acquisition of the land and the total amount of approved construction funds. Once construction begins, funds are dispersed when a Draw Request is submitted along with a detailed scope of work, city inspections, invoices and lien releases. When certain work has been completed or a milestone is achieved, Black Label Capital inspects the project to ensure the funds that are being requested match the work that has been completed. When there is a successful inspection, and all documentation has been submitted, BLC transfers those funds to the borrower. The borrower must come out of pocket to fund each milestone, and BLC reimburses the borrower for that stage of the project.

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© 2019 by Black Label Capital, LLC