Laissez-Faire Capital Partners provides development financing options for ground up construction projects. Financing options are available both for land acquisition and construction. Construction loan options are available for single-family investor homes up to large multi-family projects, condominiums, town homes, hospitality and office / retail.
A Commercial Real Estate (CRE) construction loan is a type of short-term financing specifically meant to cover the costs of constructing or renovating commercial properties.
These loans are primarily used to finance the construction or major renovation of commercial properties, such as office buildings, retail spaces, warehouses, multifamily units, and more.
Lenders will often determine the loan amount based on a Loan-to-Cost ratio, which represents the loan amount as a percentage of the total project cost. For instance, if a lender offers an 80% LTC on a project that’s expected to cost $1 million, the loan amount would be $800,000.
In summary, a CRE construction loan is designed to finance the building or major renovation of commercial properties. Borrowers should be mindful of the costs, timelines, and potential risks associated with construction and should consult with financial experts or lenders to understand the terms and conditions fully.
