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INDUSTRY SPOTLIGHT: The Cook Government in WA has launched the Builders' Support Facility, a $10 million interest-free loan program to help residential builders finish homes that have been under construction for more than two years. Eligible builders can get interest-free loans up to $300,000, with a maximum of $60,000 per property. 🤑 This initiative is in response to delays caused by rising construction costs. The goal is to support builders, prevent project delays, and avoid financial difficulties. The program is part of the government's larger plan to improve housing availability and affordability. 👷🏗️ To qualify, builders must be solvent, based in WA, and have at least four years of continuous business. Registration of interest is open until January 31, 2024, and applications will be processed on a first-come, first-served basis through the following link: https://lnkd.in/gBTnGp8w 📆 The government is hoping this will provide a short-term boost to builders facing financial challenges and minimise the impact on the construction industry. 🙌 #construction #tradiesdoitbest #constructionnews #industryspotlight #industrynews #tradiesaustralia #builder #building #wa #hia #buildersuspportfacility #governmentloan #techskillacademy

The Builders' Support Facility will provide interest-free loans to support eligible residential builders to complete new homes that have been under construction for more than two years. A maximum of $300,000 will be available to each eligible builder (up to $60,000 per property), with payments made in instalments to stimulate more completions. The scheme will help get Western Australians most affected by delayed construction timeframes into their new homes. To be eligible, builders will need to meet eligibility requirements, including: 🔸 be a solvent WA-based residential builder that has been in continuous business in Western Australia for more than four years. 🔸 have one or more uncompleted homes in Western Australia that commenced construction prior to January 2022. A registration of interest (ROI) is now available at https://brnw.ch/21wG4NE, with subscribers to be notified when the loan facility opens for applications. The ROI is open until Wednesday, 31 January 2024.

Through BIG Consulting, non-recourse loans are available for any income-producing property, including apartments, strip malls, office buildings, self-storage units, and 50 rental houses. The LLC, S corp, etc., signs for the loan, which frees up your credit and provides cash for other projects. The property's value is determined based on cash flow, calculated as the net income multiplied by the cap rate. The minimum loan amount is set at $5,000,000.00. Refinancing options offer loan-to-value ratios ranging from 65% to 85%. For apartment construction loans, loan-to-cost ratios span from 75% to 85%, encompassing land, development fees, advertising for lease-up, and other soft costs. Construction loans typically extend over 24 months, with extensions available. Caps on interest rates vary depending on the specific project. Give us a call today! 📞 205.682.8856 . . . #birminghamalabama #biginsurancegrup #biginsurance #alabamainsurance #alabamapropertyinsurance #alabamarealestate #propertyinsurance #propertymanagement #insurance #insurancecoverage #nationwidecoverage #localinsurance #homeownersinsurance #commercialinsurance #riskmanagement #businesscoverage #propertyprotection #insuranceagency #realestateinsurance #protectyourassets #secureyourinvestment #coverageoptions

Steps to Secure a Construction Loan: Land Payment Tips 🔨 Ready to build your dream home? 🏡 After securing your land and getting pre-approved for new construction, the next crucial step is obtaining a construction loan. 💰 But did you know that how you paid for your land can significantly impact your loan process? Ideally, paying cash for your land is the best approach, as it allows you to use the land's value as part of your down payment. If you financed the land, this option isn't available. Most construction loans require about 20% down, so understanding these details can save you time and money. Watch this video for essential tips on navigating the construction loan process and finding the right builder for your project! 👉 Found this video helpful? Give us a thumbs up, share your thoughts in the comments, and don't forget to subscribe for more valuable insights on home building and construction finance. Stay tuned for expert advice to make your building journey smoother and more successful! 🏠💡 #ConstructionLoan #HomeBuilding #LandPaymentTips #NewConstruction #DreamHome #ConstructionFinance #BuilderTips #HomeConstruction #RealEstateAdvice #BuildingYourHome #ConstructionProcess #HomeBuildingTips #FinancingYourHome #HomeOwnership #ConstructionAdvice

Navigating the maze of construction loans: can it be simplified? 🛠💰 As an essential tool for real estate development, construction loans often confuse many clients due to their complexity. But don't let the intricacy deter you. Once you grasp the nuances, construction loans are less of a riddle and more of an opportunity! Here are some key aspects to bear in mind: 🔑 Short-term: It’s primarily short-term, typically 12 to 18 months. 🔑 Interest Only: During construction, you usually only need to pay the interest on the loan. 🔑 Varying Rates: Interest rates may vary throughout the loan term based on several factors. The Process: 📑✍️ Stage 1 - Project Evaluation: Here, the lender reviews your proposed project, the builder’s capabilities, and your financial position. Stage 2 - Loan Sanction: Post successful review; the loan amount gets sanctioned. The consent specifies the loan terms and conditions. Sounds simple enough, right? But this is where many run into a wall. 🧱 The loan disbursement doesn't occur in a lump sum. It's spread out in draws aligned with different stages of construction. Thus, managing your project schedules with the draw schedule is paramount. ⌛💡 Here's where we at Accrefin step in! With our tailored approach, we help you to navigate the process smoothly, ensuring the construction loan becomes less of a burden and more of an asset! 🚀✨ In the end, remember that a construction loan is not an obstacle in your property development journey, but a facilitator. It’s about understanding it, managing it right, and turning it into a win-win situation. 🔥 Remember, we’re just a message away. Reach out for more clarity or to kickstart your construction loan journey! 📲💼 #ConstructionLoans #RealEstateFinance #AccrefinExpertise

This article partially explains the housing crisis. Except, it’s missing a critical piece of information. The change from Loan to Value vs Loan to Cost that cost a homebuilder approximately $600k cash to borrow construction funds for 6 homes. If homebuilders can’t secure construction loans, we can’t build homes. The crux of the problem… It’s not land, it’s not labor, it’s not governmental regulation - it’s money. #housingcrisis #realestatelending #newconstruction #affordablehomes

🔨 How do construction loans work? 🔨 Instead of receiving a single lump sum upfront from the lender, a construction loan disburses funds gradually in accordance with different stages of the project, which include: ✅ Pouring the foundation ✅ Erecting the framework ✅ Reaching the stage of lock-up ✅ Completing the interior of your home ✅ Finalizing construction This setup presents several valuable benefits. 😁 During the construction phase, interest on the loan is calculated solely on the amount withdrawn, not on the total loan value. Additionally, you typically make interest-only payments during this period. Once your new home or renovation is finished, the construction loan usually transitions into a standard home loan. 🏡 If you're considering building or renovating, reach out to us today to explore your financing options. We're committed to helping you kickstart your construction project sooner. 👇 #yourfutureset #ConstructingLoanWisdom

WA GOVERNMENT ANNOUNCES LOANS FOR BUILDERS TO COMPLETE UNFINISHED HOMES.....that's a good idea. I have written to Treasurer Mullighan recommending that SA consider introducing a similar scheme. This is a loan not a grant and is just there to bolster builders cashflow so they can complete homes that were started more than 2 years ago. There seems little point in going over why we have got to this position but suffice to say builders locked into fixed price contracts and then having to endure 30-40% price increases will welcome this short term assistance. So will their clients. Builders stuck between progress claims or not just having the finance to get completions over the line will be able to quickly get trades and suppliers moving and reach milestones that will trigger bank progress claim payments. Builders get paid, customers can move into their homes and the government gets their money back, this is win /win for all parties. I am not expecting there will be a huge take up but it will be worthwhile for those affected. Hopefully then the residential construction industry can draw a line in the sand and move on. The Advertiser Monday 8th January 2024

Starting a new construction project? Finding the right financing can be challenging. Our latest blog breaks down the 8 key requirements for commercial construction loans, from maintaining strong credit scores to preparing comprehensive project plans. Learn how to meet these essential criteria and secure the funding you need to take your business to the next level. Read more:

Common mistakes in construction loans can be a roadblock to your investment goals. Our latest blog post highlights eight mistakes you'll want to avoid. Check it out now: https://hubs.li/Q02dKc1B0 #RealEstate #ConstructionLoans