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Residential Construction Loans

Residential Construction


K2 Capital offers flexible financing for builders constructing:

  • Single-family homes
  • 2–4-unit properties
  • Multifamily
  • Condos
  • Townhomes
  • Build-to-Rent

Whether you are a contractor seeking the purchase of development ready lots, ground-up construction financing, refinance of existing entitled lots, finance of horizontal development, or multiple unit vertical construction all at once, we’ve got a solution for you!

New Construction Loans Rectangle 29482

Our Residential Home Builder Loans are Perfect for:


1. Production Builders-  25-1500 Homes a year who want to scale their business, ease of use, and get away from banks covenants and size restrictions.

2. Spec Construction Builders- 2-25 Homes a year.

3. Real Estate Investors- Multi-Family & New Construction.

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Inventory Financing RP3

Why K2 Capital for your Next Home or Subdivision Financing?


Our innovative loan solutions give builders and developers the flexibility they need with quicker decisions, less restrictions, and larger access to capital than traditional bank financing.

  • Extensive Product Suite
  • Draws Any Time
  • In House Servicing
  • Creative Underwriting from leadership that comes from the construction industry.
  • Less Onerous Covenants
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Construction Loan

Use

  • Construction Of A Permit Ready Project

Ideal Client

  • Builders 2-1,500+ Homes A Year

Key Metrics

  • Term Up To 24 Months
  • Max Loan Amount: $20 Million
  • Borrower & Project Approval Up To $100 Million
  • Ltv ≤ 65%
  • Ltc ≤ 85%
Construction Loan
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Total Funding

Use

  • Horizontal Development (Roads, Utilities, Curbs, Gutters) – fully entitled land
  • Combined With Vertical Construction

Ideal Client

  • Production Builders (20+ Homes A Year)
  • Builder/developers

Key Metrics

  • Term Up To 24 Months
  • Max Loan Amount: $20 Million
  • Borrower & Project Approval Up To $100 Million
  • Ltv ≤ 65%
  • Ltc ≤ 85%
Total Funding
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Bridge Loan

Use

  • Existing Property
  • Seek Long Term Permanent Financing

Ideal Client

  • Builders With Finished Projects
  • Builders With Existing Residential Structure

Key Metrics

  • Term 12 Months
  • Max Loan Amount: $20 Million
  • Borrower & Project Approval Up To $100
  • Million Ltv ≤ 65%
  • Ltc ≤ 85%
Bridge Loan
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Guidance Line

Purpose

  • Acquisition And Development
  • Lot Banking
  • Vertical Construction

Target Client

  • Production Builders

Key Metrics

  • Term 24 Months.
  • 12 Month Renewals
  • Minimum Loan Amount: $10 Million
  • Max Loan Amount: $40 Million
Guidance Line
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Case Study 1 Construction Loan

Loan Details:

  • Loan Size: $5,727,378
  • LTV: 60.44%
  • LTC: 85%
  • Length: 14 Months

Project Details:

  • Location: Nashville, TN
  • Type: Townhomes
  • Units: 6
  • Avg. Sales Price: $1.5 million

Borrower Profile:

  • 18 Months: 25 Townhomes & Single Family Homes
  • Local developers in the Nashville market with over 10 years of experience.
Why K2 Capital?
Equity Lift: Borrowers had owned the land for over 1 year and already completed demo work. K2 Capital gave credit for the value created towards Loan to Cost Calculation.
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Case Study 2 Construction Loan

Loan Details:

  • Loan Size: $9,244,349
  • LTV: 65%
  • LTC:85%
  • Length:16 Months

 

Project Details:

  • Location: Clearwater, FL
  • Type: Condos
  • Units 12
  • Avg Sales Price: $1.2 Million

 

Borrower Profile:

  • 18 Months: 30 Unit Condo Project
  • 20 years in the residential development industry.
  • Completed 1,000,000 square feet of commercial space, 5000 residential lots and over 1,000 residential units.
Why K2 Capital?
Leverage: Borrowers were looking at bank financing but the time to close was too long and they were being capped at 75% LTC
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Case Study 3 All-in-One Loan

Loan Details:

  • Project Size: $33,797,627
  • Loan 1: $17,484, 531
  • LTV: 61.19%
  • LTC: 72.57%
  • Length: 24 Months
  • Loan 2: $16,313,096
  • LTV: 65%
  • LTC: 68.05%
  • Length: 24 Months

Project Details:

  • Location: Parker, CO
  • Type: Townhomes
  • Lots: 112
  • Units: 74
  • Avg. Sales Price: $950,000

Borrower Profile:

  • 18 Months: 500 single family & townhomes
  • History: Combined experience of over 30 + years building Condos and Townhomes through the Front Range Market of Colorado
Why K2 Capital?
Project Size and Velocity: Borrowers were being restricted on how many townhomes they could start at time, additionally they needed a 30+ million project that had to close at once.
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Get in touch

Ready to Get Started?

Contact us today for a free, no obligation analysis of your financing needs.

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Get in touch

Ready to Get Started?

Contact us today for a free, no obligation analysis of your financing needs.