Oklahoma New Construction Loans
Building a business is exciting. In order to maintain professionalism, it’s important to have the right piece of property. You may need office space, an amazing storefront, or a significant amount of warehouse space. Whether you want to stop renting or you want to build something from the ground up, it’s going to require capital.
You likely don’t have hundreds of thousands of dollars upfront for a construction project. However, there are options for you in Oklahoma. At Delancey Street, we have creative funding opportunities with a network of investors to assist you with your financial needs.
The Importance of New Construction Loans
Oklahoma new construction loans can provide you with the funding that you need. It will allow you to build the property of your dreams in order to expand your business. Rather than waiting years until you have the capital, loans can be obtained right now. Our team can help you find the loan that is right for you.
The first thing you need to do is establish a construction plan. Do you want to renovate an existing building or build from scratch? Once you know how much it’s going to cost you, you can proceed with finding the right new construction loan in Oklahoma.
Why a Construction Loan?
New construction loans are commonly provided to businesses as opposed to commercial mortgages. Commercial mortgages are provided by traditional banks that want high credit scores as well as a significant amount of financial statements from your business. Additionally, they will provide all of the money upfront, but it may only be available for new construction or a pre-established building. Renovations would not count.
With Oklahoma new construction loans, the money is provided in stages. You set up a schedule so that money is released after an inspection has taken place following each construction step. The money would be released for land development and, then, released again for the pouring of the foundation. You pay interest as money is released as opposed to paying on the full amount. Once the project is complete, you can choose to pay in full or use the property as collateral while making affordable monthly payments.
Browsing Commercial Construction Loans in Oklahoma
Obviously, you want to choose a commercial construction loan that makes sense for your business. Whether you live in Oklahoma City, Tulsa, or Edmond, there are new construction loans in Oklahoma that can assist you. At Delancey Street, we are here to help you make the best decision.
You will want to consider the cost of obtaining a loan. Most lenders will require between 10 and 30% as a down payment due to the high-risk nature of a construction loan.
Some lenders will also have various fees that need to be incurred, including guarantee fees, processing fees, project review fees, and fund control fees.
Further, you will want to look at the interest rate that you will pay on the full loan amount. This amount can vary by lender as well as your credit score. The goal is to get a lower interest rate so that you reduce the total financing charges that you’re responsible for.
When you are ready to start exploring construction projects for your business, contact us at Delancey Street. Our team of developers and lenders can work with you to establish a customized funding plan specifically for you.