Do you need cash for your ongoing construction work? Do you need cash urgently? Do not worry. With a construction loan you can perfectly meet your monetary requirement.
A construction loan is provided to borrower to cover sudden monetary void while constructing a house. This loan is also called as story loan, because, creditors offer the loan after knowing the story behind construction. However, if you opt for a construction loan, you can avail the any sum in between £50,000-£2,000,000. Usually, this loan is offered for a short period of time.
Now, let’s talk about the interest rate of a construction loan. The interest rate of this loan is decided on the basis of various factors, such as, the stage of work, agreement among the parties and so on. Normally, two options are available with this loan, adjustable and variable rates options. As a construction loan is a short-term loan, therefore, the interest rate of this loan is relatively high. So, do not for get to compare various loan quotes before applying for a construction loan.
While availing a construction loan, you can opt for construction to permanent loan program. According to this program, a construction loans will be converted to mortgage loan after the issue of the possession certificate. But do not think that in that case you will have to pay for two different loans. In case your construction loan is changed to mortgage loan, then one will be application and other one closing.
But always bear in your mind that like secured loans, in a construction loan, there is a chance of collateral repossession. In this option, your home will play the role of collateral, thus, if you cannot repay the amount, your collateral will be seized. So, think properly before taking a decision. In such cases, experts’ advice can show you the right way.
Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is working as financial consultant for chance for loans . To find a construction loan, unsecured home improvement loan, personal loan, unsecured loan, improvement loan at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk
วันพุธที่ 30 กันยายน พ.ศ. 2552
วันอังคารที่ 29 กันยายน พ.ศ. 2552
Construction Loan Basics
It might not be too big of an exaggeration to say that the construction loan is one of the more daunting aspects of building your custom home. Before we started our project, I had nightmares about trying to pay two full mortgages at the same time (our existing mortgage and the construction loan), and I didn't see how it was at all possible. However, the reality ended up much more reasonable than I dared hope.
COLLATERAL: Many – but not all – mortgage companies require you to own your land first before you apply for the construction loan. That way, if the borrower defaults, the bank has a way to recoup their investment. Some banks will let you roll in the land purchase with the construction loan, but you may have to pay a premium.
TIMING: Your standard construction loan will be based on the one year plan. It's perfectly reasonable to expect to finish within a year, unless you are building a handcrafted log home. The good news is that you aren't obligated for the full construction loan amount from day one. You only have to pay interest for the amount of money you actually borrow from each draw. So you won't really be carrying the full mortgage until the end of construction, at which point you will roll the construction loan over to a conventional mortgage.
BUDGETING: Before you apply for the construction loan, you must get all your quotes in order. Banks are not happy about increasing the amount of money you ask for. Be sure to account for all the sub-contractors (plumbers, masons, electricians, excavators, landscapers), the well and septic, the windows and roof, the painters, and even the grass seed. Your mortgage representative will expect you to have a handle on all your financial needs (see my article BREAKING DOWN THE BUDGET OF YOUR LOG HOME for more specifics). If some of these expenses will be out of pocket, it wouldn't hurt to include them in your construction loan request anyway, so you have a cost overrun buffer. And get more than one quote if possible, then use the highest quote in the construction loan request. If you go with the lower quoted job, you'll have another buffer in your favor.
Before the mortgage company agrees on the loan, they will require a copy of the floor plan, permits, and survey. Then they will send out an appraiser who will inspect your property and determine whether your project will appraise for the amount of money they are committing to. Luckily, more and more banks are giving log homes a fair appraisal, but it helps to choose a company that specializes in log homes or your market value may come in too low.
DRAWS: When you've itemized your anticipated expenses, you can share this with your mortgage rep., who will then ask you how you would like to break down the disbursements (or "draws" as we commonly know them). This will be your decision (with a little hand-holding). At first, you might want to schedule a couple dozen draws, until you realize that there is a service charge attached to every draw. For instance, every time the bank releases a draw, you have to notify them a few days in advance. The bank sends out an inspector to verify that the promised work was performed. Then they order a Title Search to verify that you haven't had any liens put on your property since the last draw (this costs about $125 each time).
This leads us to the next issue that pertains especially to building a log home. Normally, banks release a draw after the work has been completed. However, log home manufacturers require COD when the logs are delivered (or ideally the day before). Historically this had been a bone of contention between the banks and manufacturers, until certain banks took the lead and set up accounts directly with the log home companies. This expedited the whole process. These direct deposits become draws on your construction loan.
EXAMPLE: In our case, we ordered a total of 11 draws. On settlement of the construction loan, the bank started us with about $38,000 for misc. expenses. We used much of this to bridge the gap between draws (the contractors want to get paid regularly). There was a draw for the Log Kit deposit. There was a draw for our Superior Walls precast foundation (another direct deposit). Another draw paid for the COD log delivery; another draw paid for the window delivery.
Then things got more tricky, because the next draw covered the well and septic, which had to be completed first. Once the log walls were raised another draw came, another when the "weathered-in shell" was complete, and another draw when the mechanicals were installed. The last draw came at the end of the project, but the bank wouldn't release the money until we had stained the house and planted grass seed. They wanted to make sure the house was ready for sale.
With luck, you won't be delayed by weather or on-site errors, which could derail your whole plan. However, if you don't have some extra money set aside, your contractors might quit working until they get paid, knowing full well that you won't get paid until the work is finished. Coffee and donuts help to keep relations smooth, but nothing works like cash.
And remember: if by some miracle you don't use all the money you requested in the construction loan, you can always give the rest back. So don't cut corners. Estimate high, spend less, and you just might have enough left over for that luxury item you always wanted.
Mercedes Hayes specializes in Log Homes and Residential Real estate in New Jersey and Pennsylvania. She lives in a log home she designed herself, which is featured both in "Log Home Living" and "Town and Country" magazines. You can learn more about log homes and the Delaware Valley at http://www.MercedesHayes.com
COLLATERAL: Many – but not all – mortgage companies require you to own your land first before you apply for the construction loan. That way, if the borrower defaults, the bank has a way to recoup their investment. Some banks will let you roll in the land purchase with the construction loan, but you may have to pay a premium.
TIMING: Your standard construction loan will be based on the one year plan. It's perfectly reasonable to expect to finish within a year, unless you are building a handcrafted log home. The good news is that you aren't obligated for the full construction loan amount from day one. You only have to pay interest for the amount of money you actually borrow from each draw. So you won't really be carrying the full mortgage until the end of construction, at which point you will roll the construction loan over to a conventional mortgage.
BUDGETING: Before you apply for the construction loan, you must get all your quotes in order. Banks are not happy about increasing the amount of money you ask for. Be sure to account for all the sub-contractors (plumbers, masons, electricians, excavators, landscapers), the well and septic, the windows and roof, the painters, and even the grass seed. Your mortgage representative will expect you to have a handle on all your financial needs (see my article BREAKING DOWN THE BUDGET OF YOUR LOG HOME for more specifics). If some of these expenses will be out of pocket, it wouldn't hurt to include them in your construction loan request anyway, so you have a cost overrun buffer. And get more than one quote if possible, then use the highest quote in the construction loan request. If you go with the lower quoted job, you'll have another buffer in your favor.
Before the mortgage company agrees on the loan, they will require a copy of the floor plan, permits, and survey. Then they will send out an appraiser who will inspect your property and determine whether your project will appraise for the amount of money they are committing to. Luckily, more and more banks are giving log homes a fair appraisal, but it helps to choose a company that specializes in log homes or your market value may come in too low.
DRAWS: When you've itemized your anticipated expenses, you can share this with your mortgage rep., who will then ask you how you would like to break down the disbursements (or "draws" as we commonly know them). This will be your decision (with a little hand-holding). At first, you might want to schedule a couple dozen draws, until you realize that there is a service charge attached to every draw. For instance, every time the bank releases a draw, you have to notify them a few days in advance. The bank sends out an inspector to verify that the promised work was performed. Then they order a Title Search to verify that you haven't had any liens put on your property since the last draw (this costs about $125 each time).
This leads us to the next issue that pertains especially to building a log home. Normally, banks release a draw after the work has been completed. However, log home manufacturers require COD when the logs are delivered (or ideally the day before). Historically this had been a bone of contention between the banks and manufacturers, until certain banks took the lead and set up accounts directly with the log home companies. This expedited the whole process. These direct deposits become draws on your construction loan.
EXAMPLE: In our case, we ordered a total of 11 draws. On settlement of the construction loan, the bank started us with about $38,000 for misc. expenses. We used much of this to bridge the gap between draws (the contractors want to get paid regularly). There was a draw for the Log Kit deposit. There was a draw for our Superior Walls precast foundation (another direct deposit). Another draw paid for the COD log delivery; another draw paid for the window delivery.
Then things got more tricky, because the next draw covered the well and septic, which had to be completed first. Once the log walls were raised another draw came, another when the "weathered-in shell" was complete, and another draw when the mechanicals were installed. The last draw came at the end of the project, but the bank wouldn't release the money until we had stained the house and planted grass seed. They wanted to make sure the house was ready for sale.
With luck, you won't be delayed by weather or on-site errors, which could derail your whole plan. However, if you don't have some extra money set aside, your contractors might quit working until they get paid, knowing full well that you won't get paid until the work is finished. Coffee and donuts help to keep relations smooth, but nothing works like cash.
And remember: if by some miracle you don't use all the money you requested in the construction loan, you can always give the rest back. So don't cut corners. Estimate high, spend less, and you just might have enough left over for that luxury item you always wanted.
Mercedes Hayes specializes in Log Homes and Residential Real estate in New Jersey and Pennsylvania. She lives in a log home she designed herself, which is featured both in "Log Home Living" and "Town and Country" magazines. You can learn more about log homes and the Delaware Valley at http://www.MercedesHayes.com
วันจันทร์ที่ 28 กันยายน พ.ศ. 2552
Home Construction Loans
Home construction loans are loans aimed at helping a family build a house when they don’t have enough money to do so. It is the dream of many families to get rid of monthly rent payments and have a house of their own. Home construction loans can fulfill this dream; however, borrowers should be very careful about their aims and choices.
The first thing to consider is the size of the budget that the family intends to spend on the new house. When money comes all at once, it is easy to ask for something that you cannot normally afford. This can be a trick for many families who dream of owning a house that is better than their economic capacity allows them to. Moreover, some families fall into the trap of planning for things that they do not currently need (a garage, more rooms for kids that will potentially be born, and the like.). Those two aspects can raise the loan dramatically, and there are countless cases where families struggle to pay back what they owe.
Another thing to consider is whether or not the family will be able to pay back the entire loan in the timeframe that the loan agreement specified. The problem here is not the initial amount that the borrower has asked for, but mostly the extra interest that needs to be paid to the lender. As time passes, pressure becomes even higher, and if the borrower doesn’t manage to escape from the situation, then he ends up loosing everything or paying many times the initial amount.
Finally, the family should consider whether or not it might be better for them to take the loan at a later time. A typical example would be to take the loan as soon as both parents have secured a job or as soon as they are provided with economic assistance from a non-profit source.
Construction Loans provides detailed information on Affordable Construction Loans, Bad Credit Construction Loans, Church Construction Loans, Commercial Construction Loans and more. Construction Loans is affiliated with Commercial Mortgage Loans.
The first thing to consider is the size of the budget that the family intends to spend on the new house. When money comes all at once, it is easy to ask for something that you cannot normally afford. This can be a trick for many families who dream of owning a house that is better than their economic capacity allows them to. Moreover, some families fall into the trap of planning for things that they do not currently need (a garage, more rooms for kids that will potentially be born, and the like.). Those two aspects can raise the loan dramatically, and there are countless cases where families struggle to pay back what they owe.
Another thing to consider is whether or not the family will be able to pay back the entire loan in the timeframe that the loan agreement specified. The problem here is not the initial amount that the borrower has asked for, but mostly the extra interest that needs to be paid to the lender. As time passes, pressure becomes even higher, and if the borrower doesn’t manage to escape from the situation, then he ends up loosing everything or paying many times the initial amount.
Finally, the family should consider whether or not it might be better for them to take the loan at a later time. A typical example would be to take the loan as soon as both parents have secured a job or as soon as they are provided with economic assistance from a non-profit source.
Construction Loans provides detailed information on Affordable Construction Loans, Bad Credit Construction Loans, Church Construction Loans, Commercial Construction Loans and more. Construction Loans is affiliated with Commercial Mortgage Loans.
วันอาทิตย์ที่ 27 กันยายน พ.ศ. 2552
Home Construction Loans
A home construction loan is a loan where the lender has to know the story behind the construction of the house before sanctioning the loan. In other words, the home construction loan can be called a story loan, which is to be understood before a decision is made.
A home construction loan is one of the loans that require interest-only payments during construction. Principal payment is done only upon completion. A house is considered complete when it receives its certificate of occupancy. The interest rates in this loan are usually variable. The contractor and the lender establish a schedule based on the stages of the construction of the house, and interest is charged likewise. Another point to be considered in home construction loans is how much of the project cost the lender is willing to lend. The land that you own for the construction of the home can be considered as equity on the construction loan.
With a home construction loan, you have the option of opting for the construction-to-permanent financing program wherein the loan is converted into a mortgage loan once the certificate of occupancy is issued. In this way, there is no need to make two loans; there is only one application with one closing. If this sounds feasible, it is best to rate lock from that lender. It is important to note that the home construction loan is not meant to be around for a long time. You take a loan until the completion of the home and make the necessary payments.
When choosing the best home construction loan, it is best to compare the rates of the different financial institutions offering this loan. Usually, the lower the rate, the better deal is, but it is important to read the fine print and know the details of the different offers.
Home Loans provides detailed information about home loans, home equity loan rates, home equity loans and more. Home Loans is affiliated with Mortgage Origination Software.
A home construction loan is one of the loans that require interest-only payments during construction. Principal payment is done only upon completion. A house is considered complete when it receives its certificate of occupancy. The interest rates in this loan are usually variable. The contractor and the lender establish a schedule based on the stages of the construction of the house, and interest is charged likewise. Another point to be considered in home construction loans is how much of the project cost the lender is willing to lend. The land that you own for the construction of the home can be considered as equity on the construction loan.
With a home construction loan, you have the option of opting for the construction-to-permanent financing program wherein the loan is converted into a mortgage loan once the certificate of occupancy is issued. In this way, there is no need to make two loans; there is only one application with one closing. If this sounds feasible, it is best to rate lock from that lender. It is important to note that the home construction loan is not meant to be around for a long time. You take a loan until the completion of the home and make the necessary payments.
When choosing the best home construction loan, it is best to compare the rates of the different financial institutions offering this loan. Usually, the lower the rate, the better deal is, but it is important to read the fine print and know the details of the different offers.
Home Loans provides detailed information about home loans, home equity loan rates, home equity loans and more. Home Loans is affiliated with Mortgage Origination Software.
วันเสาร์ที่ 26 กันยายน พ.ศ. 2552
Understanding Construction Loans For Modular Homes
First, a construction loan for a modular home will carry a greater interest rate than a standard mortgage, because it is actually a line of credit and will cover only as much of the cost of building your modular home as been determined in advance. These costs will include the price of your building lot; the cost of all building permits and other legal fees associated with your construction; the cost of your modular home itself; and the costs of any labor and additional materials required to finish your home.
You may also find a lender of construction loans for Modular Homes who will agree to include the amount of interest you pay during the construction and cover any cost overruns. When the work on your home is completed, the total amount you have run up on your line of credit will be converted to a standard residential mortgage.
What Construction Loans For Modular Homes Won't Cover
You'll need to find other ways to finance the early stages of your modular home instruction, including soil and perk tests, building plans, and your site plan, which must be approved by your municipal zoning board before you will be have access to the funds from your construction loan for a modular home.
How Construction Loans For Modular Homes Are Disbursed
None of the work being done on your modular home will be paid for until your lender has had it inspected, and when a particular phase of the construction has been completed and met inspection standards, payment will be made directly to the suppliers and subcontractors. If you need to ask for more payments than the number to which your lender originally agreed, you may be charged an additional fee for each extra payment.
Qualifying For Construction Loans For Modular Homes
Like traditional mortgages, construction loans for modular homes may require you to come up with a down payment. The chances of this will be higher if you are requesting a very large loan, or don't own the lot on which your home will be constructed. But there are lenders of construction loans for modular homes who will give 100% financing even if the person building the home doesn't own the lot outright.
And as with a traditional home purchase, you should establish a budget and stick with it when you are building a modular home. You may be tempted to keep asking for extras when your modular home is being designed, but dong so can throw your entire project budget out of whack and make it more difficult for you to qualify for a construction loan for modular home construction.
You can also find more info on modular log cabin. Modularhomesbasic.com is a comprehensive resource which provide information about Homes.
You may also find a lender of construction loans for Modular Homes who will agree to include the amount of interest you pay during the construction and cover any cost overruns. When the work on your home is completed, the total amount you have run up on your line of credit will be converted to a standard residential mortgage.
What Construction Loans For Modular Homes Won't Cover
You'll need to find other ways to finance the early stages of your modular home instruction, including soil and perk tests, building plans, and your site plan, which must be approved by your municipal zoning board before you will be have access to the funds from your construction loan for a modular home.
How Construction Loans For Modular Homes Are Disbursed
None of the work being done on your modular home will be paid for until your lender has had it inspected, and when a particular phase of the construction has been completed and met inspection standards, payment will be made directly to the suppliers and subcontractors. If you need to ask for more payments than the number to which your lender originally agreed, you may be charged an additional fee for each extra payment.
Qualifying For Construction Loans For Modular Homes
Like traditional mortgages, construction loans for modular homes may require you to come up with a down payment. The chances of this will be higher if you are requesting a very large loan, or don't own the lot on which your home will be constructed. But there are lenders of construction loans for modular homes who will give 100% financing even if the person building the home doesn't own the lot outright.
And as with a traditional home purchase, you should establish a budget and stick with it when you are building a modular home. You may be tempted to keep asking for extras when your modular home is being designed, but dong so can throw your entire project budget out of whack and make it more difficult for you to qualify for a construction loan for modular home construction.
You can also find more info on modular log cabin. Modularhomesbasic.com is a comprehensive resource which provide information about Homes.
วันศุกร์ที่ 25 กันยายน พ.ศ. 2552
Florida Construction Mortgages
There are different mortgages for different financial situations. There are also mortgages for different purposes in taking out a loan. If you are planning to build a home and you need the funds for the various stages of constructing one, then the best mortgage for you is called a construction mortgage. The state of Florida offers varying options for construction mortgages.
The construction mortgage program
The most common program for construction mortgage is an interest payment to be paid only during construction or until the home is complete. By the time of completion, the loan is converted into a conventional mortgage, usually a fixed-rate mortgage, until the end of the term. Payments can be made weekly, semi-weekly, bi-monthly, or monthly, depending on the available program.
When construction mortgage is best
This kind of mortgage is ideal for the construction of residential dwellings. This is a great convenience for those who have been wanting to build their own home. Building a home can be fraught with delays like having inadequate funds and unexpected costs.
Other payment options
Aside from the schedule of payments, other payment options include a tiered mortgage option. This option combines different payment options, amortization schedules, terms, and rates into one mortgage. There are also pre-payment options to pay off your mortgage quickly. For example, you can increase payments by 20 percent off your original balance each year. Another option is the match/miss option. What happens here is that you can match one or more payments and then miss your next payment or at a later date for each matched payment within the term. These options all depend on the bank or lending company. Make sure you know all the options so that you can choose which will work best for you considering your financial circumstances.
Florida Mortgages provides detailed information on Florida Mortgages, Florida Home Mortgages, Florida Interest Only Mortgages, Florida Mortgage Brokers and more. Florida Mortgages is affiliated with Florida Mortgage Interest Rates.
The construction mortgage program
The most common program for construction mortgage is an interest payment to be paid only during construction or until the home is complete. By the time of completion, the loan is converted into a conventional mortgage, usually a fixed-rate mortgage, until the end of the term. Payments can be made weekly, semi-weekly, bi-monthly, or monthly, depending on the available program.
When construction mortgage is best
This kind of mortgage is ideal for the construction of residential dwellings. This is a great convenience for those who have been wanting to build their own home. Building a home can be fraught with delays like having inadequate funds and unexpected costs.
Other payment options
Aside from the schedule of payments, other payment options include a tiered mortgage option. This option combines different payment options, amortization schedules, terms, and rates into one mortgage. There are also pre-payment options to pay off your mortgage quickly. For example, you can increase payments by 20 percent off your original balance each year. Another option is the match/miss option. What happens here is that you can match one or more payments and then miss your next payment or at a later date for each matched payment within the term. These options all depend on the bank or lending company. Make sure you know all the options so that you can choose which will work best for you considering your financial circumstances.
Florida Mortgages provides detailed information on Florida Mortgages, Florida Home Mortgages, Florida Interest Only Mortgages, Florida Mortgage Brokers and more. Florida Mortgages is affiliated with Florida Mortgage Interest Rates.
วันพฤหัสบดีที่ 24 กันยายน พ.ศ. 2552
Commercial Mortgage Loans - Want a Commercial Construction Loan? Go Green!
Like it or not, environmentally conscious, or "green" principles have come to dominate the field of commercial real estate development and commercial mortgage lending. Green building and sustainable design are now the standard in new commercial construction and residential developments. And, with local and national governments getting greener all the time, look for energy and resource efficiency to become mandatory, with green mandates being placed directly into building codes. Funding sources such-as banks, Wall Street brokers, insurance companies and hedge funds, are following suite and these principles are rapidly becoming a part of the commercial mortgage industry.
The US Department of Energy's Center for Sustainable Development recently reported that 40% of the entire world's energy supply is used by buildings. That's a huge number. And, in the United States, construction accounts for our largest manufacturing sector, representing a staggering 13% of US GDP and nearly 50% of total wealth creation. Even tiny percentage gains in efficiency can amount to massive over-all energy savings.
Both institutional and private lenders as well as the REIT, (Real Estate Investment Trust) hedge fund and private equity industries have all embraced the environmental building movement. Green is the color of money and green is the color of commercial mortgage construction lending now into the future.
Lenders love green construction because good for profits as-well-as being good for the planet. Energy costs money, resources cost money and cleaning up messes' costs money. Saving energy, saving resources and sustaining a site all save money, during construction and throughout the operational life of the property. Lenders know that green means efficient and, when they evaluate a project for financing they want to be assured that the funds they invest will be used cost-effectively and that the building will be economically viable.
Environmentally sound buildings can cost substantially less to operate than comparable buildings that disregard such efficiencies and tenants and their clients report higher customer satisfaction rates when doing business in them. To a lender, whose capital is secured by the building, this translates into higher quality collateral and makes their investments more secure.
As a commercial real estate investment banking professional, I can attest to the fact that developers who choose designs that are not green will find it very difficult to raise capital or secure loan approvals for their projects. We are in the midst of a sever liquidity crisis; construction money is in short supply. Lenders are giving priority to green development leaving very little capital available for conventional construction.
The Federal Government's LEED (Leadership in Energy & Environmental Design) rating system awards silver, gold and platinum certification to buildings that reduce waste and save energy and lower costs. LEED certification is almost (although not officially) a mandatory requirement in-order-to get a big construction project funded today.
Being green is no longer just the passion of the activist anymore; it is the new emerging standard in commercial construction as-well-as commercial real estate finance. Investors and developers who need commercial mortgages will do well to pay attention to this trend.
MasterPlan Capital LLC - Commercial Real Estate Investment Bankers
Apply For a Commercial Real Estate Mortgage Loan Online at: http://www.masterplancapital.com Lending for the purchase, refi and development of commercial real estate property. Quick answers, professional service.
Glenn Fydenkevez is President of MasterPlan Capital LLC. He is a 20+ year veteran of Wall Street and has served as an officer at one of the world's largest investment banks. You may contact him at:
glenn.fydenkevez@masterplancapital.com
The US Department of Energy's Center for Sustainable Development recently reported that 40% of the entire world's energy supply is used by buildings. That's a huge number. And, in the United States, construction accounts for our largest manufacturing sector, representing a staggering 13% of US GDP and nearly 50% of total wealth creation. Even tiny percentage gains in efficiency can amount to massive over-all energy savings.
Both institutional and private lenders as well as the REIT, (Real Estate Investment Trust) hedge fund and private equity industries have all embraced the environmental building movement. Green is the color of money and green is the color of commercial mortgage construction lending now into the future.
Lenders love green construction because good for profits as-well-as being good for the planet. Energy costs money, resources cost money and cleaning up messes' costs money. Saving energy, saving resources and sustaining a site all save money, during construction and throughout the operational life of the property. Lenders know that green means efficient and, when they evaluate a project for financing they want to be assured that the funds they invest will be used cost-effectively and that the building will be economically viable.
Environmentally sound buildings can cost substantially less to operate than comparable buildings that disregard such efficiencies and tenants and their clients report higher customer satisfaction rates when doing business in them. To a lender, whose capital is secured by the building, this translates into higher quality collateral and makes their investments more secure.
As a commercial real estate investment banking professional, I can attest to the fact that developers who choose designs that are not green will find it very difficult to raise capital or secure loan approvals for their projects. We are in the midst of a sever liquidity crisis; construction money is in short supply. Lenders are giving priority to green development leaving very little capital available for conventional construction.
The Federal Government's LEED (Leadership in Energy & Environmental Design) rating system awards silver, gold and platinum certification to buildings that reduce waste and save energy and lower costs. LEED certification is almost (although not officially) a mandatory requirement in-order-to get a big construction project funded today.
Being green is no longer just the passion of the activist anymore; it is the new emerging standard in commercial construction as-well-as commercial real estate finance. Investors and developers who need commercial mortgages will do well to pay attention to this trend.
MasterPlan Capital LLC - Commercial Real Estate Investment Bankers
Apply For a Commercial Real Estate Mortgage Loan Online at: http://www.masterplancapital.com Lending for the purchase, refi and development of commercial real estate property. Quick answers, professional service.
Glenn Fydenkevez is President of MasterPlan Capital LLC. He is a 20+ year veteran of Wall Street and has served as an officer at one of the world's largest investment banks. You may contact him at:
glenn.fydenkevez@masterplancapital.com
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