Building a new property in Boston takes more than a good location and construction plan. You also need financing to cover everything from land acquisition and site preparation to labor, materials and other expenses. With so much to consider before construction even begins, finding the right lender is an important first step. So, how do builders finance new construction? Here’s what you need to know.
Building a Budget That Works
Begin with a realistic budget covering the land, construction, inspections, insurance and financing costs, with some room for unexpected expenses. A construction loan provides funding for a property that hasn’t been completed yet. Unlike with a standard mortgage, a construction loan typically releases funds in stages as building work moves forward.
Builders can finance new construction through traditional banks, private investors or private real estate lenders like The Raymond C. Green Companies. Each option comes with different requirements, costs and timelines. For projects in Boston’s competitive real estate market, private financing can offer the speed and flexibility needed to move forward.
A Faster Route to Construction Financing
Traditional banks may require committee approvals, third-party appraisals and other time-consuming red tape. This process may not fit your construction schedule or a time-sensitive property purchase. That’s where The Raymond C. Green Companies come in. We provide short-term private financing for new construction and other real estate projects throughout Greater Boston and New England.
Working with a direct lender means fewer layers between you and the people making financing decisions. At The Raymond C. Green Companies, we use our own capital, personally evaluate properties and handle loan servicing in-house. We consider the property’s value and the potential of your project, not just your credit history, when reviewing your loan application.
What Lenders Want to Know About Your Project
When researching “how do builders finance new construction?” don’t overlook the importance of having a well-developed construction plan. A detailed budget, realistic schedule, blueprints, property information and expected finished value can help a lender evaluate the opportunity. You should also consider how you intend to repay the loan, whether through the sale of the completed property or through refinancing.
Let’s Get Your Next Build Off the Ground
When you’re ready to move forward with a new construction project in Boston, having the right lender on your side can make all the difference. At The Raymond C. Green Companies, we bring more than 50 years of private lending experience to every project we consider.
Whether you’re building a single-family home, condominiums or another type of property, our team can help you explore financing options to support your plans. Call us at (617) 947-8070, email justin@raygreen.com or contact us using the form here on our website to get started.
