Avatar's Blog
» Funding construction by collateralizing completed
Avatar Financial Group does not fund land (improved or raw) or construction loans. However, we have made loans that generated the capital required for construction. For example, Avatar funded a newly constructed church in Texas. The congregation used that loan to complete the construction of a community center. Their plan is to operate the community center and pay back the loan by refinancing both the church and community center through conventional loans in the near future.
By collatreralizing properties that are already built, you can generate capital to build new projects. Count on your property being able to generate 65% of its current selling price (quick sale value). You will need to pay off any 1st lien loans and/or have other liens subordinate to the new hard money loan.
