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Louisiana New Construction Loans

We empower entrepreneurs, real estate investors, and businesses of all sizes challenge the status quo. We take risks on the go-getters, and do’ers – who have an opportunity and need a partner.At Delancey Street, we invest in people and their ideas – not abstract concepts like credit scores, or other financial metrics. Tell us about your idea, let’s discuss your opportunity

1

High LTV

We fund hard money loans up to 80-90% LTV with no issues.

2

Fast

We promise to treat you like a partner

3

No $ Limit

No limits on what we can do for you.

Business Funding

Our client was a trucking company based out of NY, that needed quick funding. In 24 hours, we arranged $100,000 in funding.

Raised
APR
ARV
700,000
9,0%
60%
100% Funded!

Residential Refinance

We funded a purchase in California, for $1.2 million with 65% LTV. We helped the developer with with a 11% loan with balloon payment.

Raised
APR
ARV
1,200,000
11%
82%
100% Funded!

Lawsuit Funding

Client was injured in a car accident and needed a cash advance on the future value of his lawsuit. In 48 hours, our funders wired funds over.

Raised
APR
ARV
830,000
8,99%
75%
100% Funded!

PARTNERS FIRST.
LENDERS SECOND.

Hear from people we've helped

Delancey Street makes lending easy. They took a chance on me when no one else would.

Leo kovacz

Founding Partner (Zooomr Car Leasing)
Delancey Street funded our e-commerce shop and really gave us the chance to grow our business significantly.
Delancey Street makes lending easy. They took a chance on me when no one else would and helped my...

TJ

~

Industries We Service

Cannabis
Residential Real Estate
Commercial Real Estate
Startups

Our team is always available, and ready to help

Our team of industry experts is ready to help with all of your business needs. Whether you’re looking for a reliable hard money lender, looking to go public via a reverse merger, or need private capital for a venture – we can help.

Industry Experts

Our team consists of extremely qualified industry experts

Quick Service

We work diligently, and quickly, to help you

Louisiana New Construction Loans

If you want to expand your business in Louisiana, there are several funding options available for new construction. A commercial construction loan is a loan that supplies funding for renovations or a new building. There is a difference in how a commercial construction loan works compared to a commercial mortgage.

How are a Commercial Construction Load and Commercial Mortgage Different?

A commercial construction loan provides you with most of the funds you need for your land development and construction costs. A commercial mortgage is for business owners that want to buy an existing building. There are differences in how a construction loan and mortgage disperse funds. A mortgage disperses a lump sum, you buy the property and pay your principal and interest in monthly payments. A commercial construction loan disperses payments in stages. With the dispersed money, you do the work until the next milestone and then you get more of the loan. Borrowers tend to pay the interest on the construction loan until the last payment is dispersed. Then, they use a commercial mortgage to pay off the construction loan because the monthly payments are lower and over a longer period.

Requirements for a Commercial Construction Loan:

  • Down Payment – Usually 10% to 30% of the cost to build.
  • Credit Scores – High 600s minimum. Business credit score is also reviewed.
  • A debt to income ratio below 43%
  • A debt service coverage ratio above 1.25
  • Experience.
  • Good financial records.
  • Construction plans.

The requirements for a commercial construction loan are set by the lender. They are not all the same and some are stricter than others. The same is said for fees and interest. The interest you pay is determined by the type of loan and lender you choose. The fees you pay may include fund control fees, guarantee fees, documentation fees, processing fees, and project review fees.

Commercial Construction Loans:

  1. Mezzanine Loans
    These loans are used by many to produce a down payment for a commercial construction loan. The loan is secured by stock in the business. If you default, the lender gets equity in the business. The interest rates are between 12% and 20%.
  2. Hard Money Loans
    A hard money loan is a short-term loan that is easier to qualify for than a bank loan. The interest rates and fees may be higher. These loans are from private lenders and most have a term of one year.
  3. Bank Loan
    A traditional bank loan for construction is based on the funding, timeline of the construction project and qualifications. Once the construction loan is paid a commercial mortgage takes effect, if the borrower chooses this form of financing. The interest rates and monthly payments are lower with this type of loan.
  4. Small Business Administration
    The SBA has two programs for commercial construction. The 7(a) program is used for either the purchase of an existing building or for construction. The terms are up to 25 years.

    The CDC/504 loan term is for 10 to 20 years and the interest rate is fixed. A guarantee is needed from anyone who is an owner of 20% or more. These small business programs loan up to five million.

The application process can be lengthy. Having all your financial and construction paperwork in order will help the lender go through everything in a shorter amount of time. Lenders may request more information as they review your documents.

Hard Money Loans

Need funding for your next project?

Complete Our Hard Money Loan Application
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