New construction needed in New Jersey
With the housing supply remaining low in a high demand market, this seller’s market is the perfect time for your next construction project. While some real estate investors prefer to fix and flip houses, new residential construction is the only way to increase the existing supply to match the growing demand, making it an excellent investment opportunity. According to Mashvisor, the median price for home sales in the area grew over 5% in June 2020 while supply continues to dwindle from 2019.
The desire for suburban living is reaching an all-time high, but people still want to live near major metropolitan areas and travel hubs. Asset Based Lending is dedicated to helping serious real estate investors meet this housing demand with accessible new construction loans. Borrowing from ABL means you’re borrowing from a reputable construction loan lender with flexible draw schedules and dedicated experts, letting you focus on the project at hand. If you have the right property and the right plan of action, our team is ready to show you why we have the most reliable construction loans.
Why use hard money loans for construction?
As a builder, you have several options for funding for your projects. Not all lenders and loan programs are equal, so it is important to find the best option for you. Hard money loans are a form of short-term funding designed to provide the money you need to quickly purchase the land, build the property, and sell the home or roll into a long-term loan.
Hard money lenders rely more on an evaluation of your project and real estate experience, instead of traditional underwriting criteria. This flexible criterion allows for faster approval and a smooth lending process that better fits the new construction business model. Investors and contractors should be able to prove that they have the appropriate experience for the deal and enough liquidity to carry out the project according to plan. This distinguishes new construction loans from conventional loans, for which you need to spend more time proving your personal creditworthiness.
When you apply for a hard money loan for new construction, the process is structured significantly differently. Although you still must establish a few parameters such as the value of the land and your ability to make a down payment, the rest of the approval process is much quicker. Many investors find hard money loans to be more efficient than other lending options, allowing them to catch a great deal in the nick of time. Asset Based Lending is proud to be one of the premier hard money lenders for new construction.
The new construction loans NJ investors trust
Experienced investors partner with Asset Based Lending — a lender that understands your project and provides you with the flexibility and reliability your business demands. Our loan officers and underwriters are experts in the local markets, so you can count on them to truly understand your deal scenario. Investors come back to us each time they need a new construction loan because of our ability to move quickly and efficiently. We can approve construction loans within 24 hours and close in 10 days or less.
In addition to our quick processing capabilities, our hard money loans for new construction feature the following benefits:
- Loan sizes ranging from $100K to $2.5M
- Competitive interest rates starting at 9%
- 100% construction financing
- Loan terms averaging 12-18 month terms
- No prepayment penalty
- Professional draw management
The right kind of loan may be the difference between a successful project and a stressful one. If you’re ready to move forward with your project or want to learn more about the best new construction loans, contact Asset Based Lending today.