All Forum Posts by: Kevin Alvarado

I have two lots. I have an experienced builder with years of experience and numerous of new construction done. I have plans and permits in review. I am now looking for funding. Anyone have any recommendations?

Thank you!

Hello Kevin,

I will recommend that you compare financing options from a couple of lenders before you proceed. For new construction loans, how much experience(buying, selling, rehabbing investment properties) do you have in the last 3-5 years with your name on title(not your builder)?

Some lenders may ask you for that. Hard money seems a way to proceed.

We have 3 properties to our name but no experience.

0 Votes

Chicago, Illinois

Quote from @Doug Smith:

Quote from @Kevin Alvarado:

Quote from @Doug Smith:

That's exactly what we do!

Through castle rock capital management? In Chicago?

Based in Tampa, but we'll do investor deals in other states

How can I get in contact with you?

0 Votes

Chicago, Illinois

Quote from @Doug Smith:

That's exactly what we do!

Through castle rock capital management? In Chicago?

0 Votes

Chicago, Illinois

Thank you!

4 Votes

Chicago, Illinois

Hey everyone!

I am looking for a loan to go with a new construction on my lot. I attached screenshots of the terms I received from a lender. I was wondering if this sounds good and it’s the appropriate loan for what I am trying to do.

I am trying to build a single family to sell. Just basically just build and sell.

Thank you for any help!

0 Votes

Quote from @Dave Skow:

@Kevin Alvarado- thanks ....if the offer is on a primary residence for a tradition " 2 in 1" construction loan or a construction to permanent loan ...then this sounds a little high but not too bad ...a hard money loan will likely be much higher in terms

0 Votes

Quote from @Erik Estrada:

Quote from @Kevin Alvarado:

Hey everyone,

I have my builder and lot ready. Permits and plans are in review. I am browsing for a loan to get the financing side of this project taken care of.

I am wondering which one of the two loans (hard money vs construction/rehab) would be recommended and what are the differences?

How does a construction/rehab of 9.9% with 2.5 points sound? I received an offer but am unsure if I am making the right move by going forward with this type of loan. I don’t know if they are basically similar. This is not from a bank, this is from a broker.

Thank you! Any opinions appreciative.

If you are building on an empty lot, you would need to do a ground up construction loan.

If there is a structure on the lot and it needs rehab work, then you may look into hard money financing.

The main difference between the two is leverage and experience requirements.

On a ground up you may do up to 75% of the land value or purchase price, whichever is lower, and have 100% of the construction held back. The max Loan to ARV is around 70%.

You must have prior ground up experience to qualify in most cases.

On a hard money loan, most lenders can do up to 90% of the purchase, 100% of the rehab financed. The max loan to ARV is 75%

You do not need to be experienced to qualify, however there will be an LTV reduction

So it is ideal to get a construction loan rather than a hard money loan? Especially for this new construction on an empty land.

Hard money is more when we are not able to obtain a construction loan or if the 75% is not enough funds compared to a 90%.

Just trying to better understand.

Please let me know if I’m correct or not. Thanks!

0 Votes

Quote from @Justin Hammerle:

@Kevin Alvarado - is the broker providing the funds himself or sourcing it elsewhere? I would find out directly who is supplying the funds and their reputation. Outside of that the terms don't sound terrible for a private loan.

Sourcing it somewhere. Market rate is 9.9% and he is taking 2.5%. Total all in is 12.4% interest rate for this new construction loan.

0 Votes

Hey everyone,

I have my builder and lot ready. Permits and plans are in review. I am browsing for a loan to get the financing side of this project taken care of.

Thank you! Any opinions appreciative.

0 Votes

I am building a new construction but need to figure out the little things for the house such as a basement, 4 rooms upstairs coming up to 3000 sq ft, or 3 rooms coming down to 2500 sq ft.

This construction is in the Belmont Cragin area, Chicago, IL. The lot is 30" wide.

My question is if it would be a good investment to finish the basement or leave it unfinished. We are doing a single-family house. Basement, first floor, and second floor. Should we choose to do 3 or 4 rooms on the top floor?

I would appreciate any advice on anything. Thank you!

1 Vote

All Forum Posts by: Kevin Alvarado

Kevin Alvarado has started 8 posts and replied 17 times.

Post: Looking For New Construction/Hard Money Loan

Post: Looking For New Construction/Hard Money Loan

Post: Looking For New Construction/Hard Money Loan

Post: Looking For New Construction/Hard Money Loan

Post: Loan for new construction. Build and sell.

Post: Hard Money vs Construction/Rehab Loan

Post: Hard Money vs Construction/Rehab Loan

Post: Hard Money vs Construction/Rehab Loan

Post: Hard Money vs Construction/Rehab Loan

Post: NEW CONSTRUCTION BASEMENT OR NO BASEMENT?