Your Home Is A Stage: Tips For Real Estate Staging

Your Home Is A Stage: Tips For Real Estate Staging

4 Important Considerations Before Seeking A Construction Loan

by Andre George

Securing construction real estate investor loans comes with challenges. If you plan to build a property and rent or sell it, then a construction loan may work in your favor. However, to qualify for a construction loan, you must make sure you have everything in order. Here are a few considerations for those who may want to seek a construction loan.

1. Have All Your Plans Finalized and Ready

When seeking a lender for a construction loan, it can help if you have all your plans and details ready for the lender's perusal. You should have every conceivable part of the building's construction documented and in order. Things to include:

  • Blueprints or detailed floor plans
  • Estimated costs from start to finish
  • Estimated ongoing maintenance costs for after construction
  • Profit projections or detailed business plans for the completed property
  • A construction timeline
  • A list of contractors and suppliers available for construction

Include anything related to the construction and use of the project. Different lenders may want different details, so prepare yourself by having all the details to suit any potential lender.

2. Secure Quotes Before Seeking a Loan

Before you approach a lender, find a reputable builder who has the capabilities to make your project a reality. The more reputable the builder, the better the chance of finding a good lender. You don't have to choose a single builder.

You can list several builders, their quotes, their references, and their past projects. Lenders want to see you've done the legwork and lined up licensed professionals who can complete the project.

3. Have as Large a Deposit as Possible

As with most types of loans, you have the best chance of finding lenders if you have a good deposit amount already. For construction loans, lenders may have deposit requirements set in stone.

You should expect at least a 20% minimum, but you should strive for the largest percentage you can reasonably afford. In some cases, a larger deposit will come with benefits, such as a better interest rate. Larger deposits also show you're serious about the project and dedicated to making a profit.

4. Keep Your Own Finances in Order

All the typical loan requirements will exist as well. You need to show you or your business have a good track record with repaying debts. You also need to show a good history of past successful real estate endeavors. If you're new to property building and selling, then you need to show your business acumen in your plan.

Lenders take a huge risk on construction loans, so they want to make sure you know what you're doing. When you're ready, speak with professionals who work with construction real estate investments about your plans.


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Your Home Is A Stage: Tips For Real Estate Staging

Once you sign the sale contract with your listing agent, there's a good chance that things will start moving quickly. Your agent will want you to stage your home for the listing photos, open houses, and showings. If you've never experienced the staging process, you may not know exactly what to do or where to start. The information on this site will help you to not only understand what's expected of staging but also offer tips for you to maximize your efforts without investing a lot of time. I hope the information here makes your home sale process a little bit less confusing and a little easier to manage.