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Construction loans for your LLC
Most investors build through an LLC. We make construction loans to LLCs for homes built to sell or rent, and fund 90% of the lot and build.
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Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
Why investors borrow through an LLC
Holding each build in an LLC keeps the project separate from your personal finances and from your other projects. Business-purpose construction loans are normally made to the LLC, with the owner signing a personal guarantee.
What your LLC needs
- Operating agreement
- Certificate of formation
- Certificate of good standing
- EIN letter
- ID and credit for the owners guaranteeing the loan
An example
| Deal | Amount |
|---|---|
| Lot price | $80,000 |
| Build budget | $320,000 |
| Total cost | $400,000 |
| We fund 90% | $360,000 |
| Sale price when finished | $560,000 |
| You bring (10%) | $40,000 |
Questions builders ask
Straight answers about construction loans for LLCs.
Can my LLC be the borrower on a construction loan?
Yes. Most of our loans are made to the investor's LLC.
How much of my build do you fund?
We fund 90% of your total cost: the lot price plus the build budget. You bring the other 10%.
Do I need building experience?
No. We lend to first-time builders with no completed projects, as well as to experienced builders.
Can I use this to build a home I will live in?
No. These are business-purpose loans for homes built to sell or rent.
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