Construction Loan - what banks are you using?

Question

Hello. We are building in Cape Coral FL and looking to put 2 new construction loans in place. Does anyone have a good lending institution they have been using. No Lima One, NMTC, Lending One, CoreVest, MK Funding, Toorak. I have used them or have relationships with them. I am looking to expand my network of lenders.
And no brokers please. Looking for referral direct to lender

Thank you!

Elena

John Morelli · Answer

Since you've ruled out a handful of the better-known debt funds that provide ground up and build for rent financing, are you specifically seeking to improve on the market-rate terms for a construction loan, or do you need a specific underwriting parameter you're not finding?

The most advantageous terms will generally be achieved through a local, in-market regional or community banks that provides construction financing for investors. There are many south Florida banks that provide construction revolvers and closed-end construction financing to investors for residential builds.

If you don't have a network of these relationships in the market footprint of the project, it is best to work with a commercial mortgage broker. Relying solely on a single lender or bank can pose significant risks, potentially leading to unnecessary expense, rejections or unexpected obstacles during the process. With their extensive network, brokers know who is lending, and can leverage competing lenders to secure longer loan terms, lower interest rates, reduced fees, and most importantly, favorable loan covenants, substantially minimizing the overall risk and loan cost for borrowers.

Alex Hunt · Answer

Have some great ground construction lenders and banks as well, happy to connect

Andrew Postell · Answer

@Elena Orselli I can't tell what type of a project this is...but sometimes finding new construction loans can be a little challenging.  Usually, the best lenders for this come from smaller, local lenders in our market. So, try some local real estate meetup groups.  Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too.  Even facebook might have some good local groups for you. Just search for "Florida Real Estate Investors" and some of those groups have THOUSANDS of members in them.  But post locally for this.  That’s the best bet.