Avatar's Blog
» Collateralize Income Producing Properties to Build
Land and construction loans seeem to be hard to get these days... so what else is new, right? Avatar Financial Group is receiving an increasing number of loan requests for construction projects. One suggestion we can offer for those 'already in the game' is to collateralize properties already constructed and operational to generate capital to build more projects.
For smaller construction projects, it may even be possible to collateralize private residences of the principals to generate capital for a construciton project. When the project reaches 85%+ completion, a loan based on the value of the project can be obtained and the initial loan(s) paid off. Use what you have to generate what you can and build on the equity in stages - think of it as a stepping stone method.
