For over 31 years, we have had the flexible financing options to meet your needs for an apartment construction loan.
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Apartment Construction Loan


Looking for commercial construction loans or apartment construction loans? Are you looking to build an apartment, office building, a mixed use, retail center, industrial building, or any other type of commercial property? We've been in the commercial real estate financing business since 1977 and can help! Ocean Pacific Capital is your source for access to the best financing programs from the most aggressive apartment construction investors in the world. When you make the decision to finance your apartment with us, you ensure you are getting the best rate and terms this market has to offer.

The process to obtain an apartment construction loan can be a complex process, which involves several tests. You need our trusted expertise and years of experience to guide you through the process. The first test is the profit test, which will determine an estimate of the value of your finished project and if it will be worth more than it will cost to construct. Similarly, a Loan-to-Value Ratio test will determine, once a project is completed and the commercial property is occupied, the construction loan will be a certain percentage loan-to-value. Most construction lenders will permit up to 80% loan-to-value, which will depend on the borrower's credit, cash flow, and various other factors. Depending on the borrower's qualifications, additional equity may be obtained through a mezzanine loan.

Commercial construction lenders and apartment construction lenders often rely on the loan-to-cost ratio as they do not often trust the appraisal of the building. The loan-to-cost ratio is the calculated percentage of the total cost of the project that the construction lender is being asked to loan or cover for the construction of the project. Normally, developers cover at least 20% of the total cost of the project in the form of free and clear land. However, if the apartment construction loan or commercial construction loan is up to or more than 90% of the cost, the lender will require that the developer obtains more leverage.

The developer may obtain more leverage through a mezzanine loan. When planning construction of an apartment or a commercial property, something to consider is how much the money the property will bring in (income) to qualify for a takeout loan. If a takeout loan is large enough it may be able to pay off the construction loan, allowing the apartment construction lender or the commercial construction lender to get out of the deal. To determine whether or not the takeout loan will be large enough to pay off the apartment construction loan or the commercial construction loan, the construction lender will calculate the Debt Service Coverage Ratio. This ration should be larger than 1.25 and the net income from the project must be larger than 25% than the proposed payments of the loan. The net worth-to-loan size ratio is also important to the construction lender, whether it is an apartment construction loan or a commercial construction loan because the developer's net worth should be at least as large, if not larger, than the loan amount of the project.

For over 31 years, with the lowest and most competitive wholesale rates in the nation, rebate pricing, 80% LTV, 30 years amortization, interest only, and no balloon payments, our programs are the most desired and the first choice of borrowers nationwide. Loan amounts are available starting from $500,000 with no upper limit. We specialize in wholesale commercial loans, wholesale conduit loans, wholesale apartment loans, wholesale apartment financing, wholesale apartment lending, wholesale apartment refinancing, wholesale mixed use loans, and wholesale apartment purchase loans.

We understand what it takes to close a commercial loan because this is what we've been doing since 1977. And as always, we strive to exceed our client's expectations. Our responsibility is to get your loan processed, underwritten and closed in a timely fashion. If you are unsure about the process of obtaining a commercial loan, let us help you. Our commercial loan specialists will be more than happy to answer any questions that you may have. Call us today at 1-800-595-1474 to get started!


Whatever your financing needs,
we will tailor a loan that's right for you.

 


Daily Oil & Gas and Wall Street Journal News
1/20/20

Evolution Well Services Inks 2-Year Electric Frac Deal
Posted on Sunday January 19, 2020

Evolution Well Services has landed a 24-month deal providing electric fracking services to an unnamed onshore oil and gas producer beginning this quarter.

Saipem to Test Plastic Recycling Tech
Posted on Sunday January 19, 2020

Saipem reported Monday that it has signed a license agreement to test a new technology for the disposal and reuse of plastics.

SNC-Lavalin Wins UAE Haliba Field Contract
Posted on Sunday January 19, 2020

Execs from the Al Dhafra joint venture commemorate first oil from the Haliba field in this ADNOC photo from July 2019. PHOTO SOURCE: ADNOC

OPEC, IEA or EIA Completely Wrong in 2020 Oil Market Analysis
Posted on Sunday January 19, 2020

Somebody big has got their analysis of the 2020 oil market flat wrong.

Libya Oil Production Plunges
Posted on Sunday January 19, 2020

Libya's eastern warlord kept virtually all of the nation's oil fields shut in a show of defiance after world leaders failed to persuade him to sign a peace deal.

Panhandle Appoints New CEO
Posted on Sunday January 19, 2020

Panhandle Oil and Gas Inc. has revealed that Chad L. Stephens has been approved as the new chief executive officer of the company.

Global Exploration Poised for Upswing
Posted on Sunday January 19, 2020

Global exploration is poised for an upswing as operators flock to licensing rounds, according to Rystad Energy.

Snake Oil Goes Mainstream
Posted on Sunday January 19, 2020

An obscure part of the global marine-fuel market, once viewed as having little value for most shippers, is about to have its day.

Oil Up After Unrest Hits Key OPEC Producers
Posted on Sunday January 19, 2020

Oil jumped back above $65 a barrel as supply disruptions in Iraq and Libya reignited concerns over the market's vulnerability to geopolitical risk in key production regions.

Oil Prices Nearly Flat for the Week
Posted on Thursday January 16, 2020

WTI and Brent crude oil futures posted small gains Friday but are down slightly for the week.

Wall Street Journal
Commercial News

1/20/20

WSJ.com: US Business

Hospitals Give Tech Giants Access to Detailed Medical Records
It isn?t only Google that can tap into patients? digital health records: Microsoft and IBM also have signed agreements with major hospital systems giving them the ability to access patients? identifiable data.

Sears Woes Hit Hometown Stores
Since Eddie Lampert acquired the chain, store owners have struggled to get products and compete with lower prices from sears.com, causing some to consider leaving their contracts.

Google Pushes 'Sensible' Ideas for How to Regulate AI
Silicon Valley executives and lobbyists like to say they embrace regulation. Now they?re launching a frenzy of lobbying on what they want that regulation to be?and Europe is set to be one of the first battlegrounds.

Americans Show Scant Interest in Electric Vehicles, Subaru CEO Says
The CEO of Subaru expressed frustration over trying to navigate between environmental regulations that seek to expand use of electric vehicles and the lack of real consumer demand for them.

The Investor Clash Behind Tesla's Surge Toward $100 Billion in Market Value
The rise in Tesla?s stock has turbocharged a long-running war over the proper value of the shares. This has split investors large and small into warring camps?both sides digging in with fervor.

IMF Predicts Global Economy Will Rebound in 2020
The IMF expects global gross domestic product will expand by 3.3% in 2020, up from 2.9% in 2019.

Foreign Investment Falls to Near-Decade Low as Globalization Slows
New overseas investment by businesses around the world fell for the fourth-straight year in 2019 to its lowest level in almost a decade, pointing to a slowdown in globalization as the world-wide economy cooled.

BRE #:00619059
Charles Elfsten, President
Charles A. Elfsten
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