New Construction

· Tear down or raw land adding a structure

· Highest risk loan in the industry

· Structure: short term typically 12 – 36 months

· Experience requirement: typically, 3 previous deals completed

· LTC ranges from 70% - 90% depending on asset type

· Borrower equity is injected up front

· Plans, permits, and drawings to be provided up front

· Advanced draws not an option on New Construction

· Essential to have proper reserves after deal funding

· Inquire about pay as you draw or full boat interest

· Have phasing and draw plan in place