New construction Business plan for financing

7 Replies

I am a platinum card member with America express and I spoke with them about backing me financially to build 3 new houses in a booming northern Colorado town which I figured out take $250,000 each. They want me to submit a detailed business plan, this is not my area of expertise. Can anyone lend a hand with the business plan, or builders in the area any insight or assistance will be greatly appreciated.

They are looking for the information you would give to any lender. You need to provide a complete description of what you plan to do. Complete plans and specifications, contract with a builder, lot size and cost, house size and cost. finished appraised value of lot and house with supporting comps.

I would ask for rates and terms with them.  I had a client a couple months ago try and use them, and the rates and terms were insane crazy expensive.

@Russell Cooley so you can google business plans and get a go by. Perhaps you could ask them for a copy of one they approved (they could redact the personal information from it) to see what you are up against. I would think a local bank that lends to builders would be a better fit. I can't imagine American Express would be a good fit for what you want. My guess is they don't want to tell you "no" so they made something up so you would go somewhere else.

@Tim Johnson followed up and rates and terms according to my already established platinum membership the term are as follows for short term loan Funding options from

$500 - $250k per loan‡

Payment Terms of

30/60/90 days‡

Fixed fees based on your repayment term‡

30 days 0.6%

60 days 1.2%

90 days 1.8%

What happens after 90 days? Not many people can get through a flip in 90 days let alone new construction. New construction in Denver is currently 10 months if there are no significant delays and with the labor shortage it's easy to get to 12 months on a new build.

6%/month is 7.2% per year. Local banks that lend on new construction are 5.25% or better with 20-25% down.