The CCM Lending Fund fills the lending gap as a private lender in the new construction and rehab market.
Loans provided by the fund typically involve residential construction lending, fix n’ flip rehabilitation projects or land for residential construction.
- Banks are hindered by new regulation or are too risk-averse to keep up with borrower demand
- The CCM Lending Fund can offer greater flexibility – including time, income valuation, loan-to-value ratio, property condition, credit score evaluation
- There is a strong demand for housing, low inventory of homes and developed land
- Demand is boosting prices and fueling construction trends
- Lending gap between volume of building demand and available credit
Keys To Success: Borrower Perspective
Speed: Ability to respond to borrower inquiries same-day and make preliminary loan decision (contingent on verification of key data) within 24 hours
Creativity: Willingness to work through unique problems with borrower rather than rejecting a loan that doesn’t perfectly fit rigid parameters.
- Give the borrower credit for income and assets that banks will disregard
- Consider project value “as complete” (once rehab or construction is done) in addition to current “as-is” value.
- Credit score – Accept imperfect credit score if borrower can pre-pay interest or has sufficient collateral that can be used as additional security for loan.
Key Underwriting Criteria for Borrowers
- Borrowers must have knowledge and experience in asset class
- Credit rating and clean background check
- Financial strength of personal guarantors
- Well-defined short-term exit strategy
Key Underwriting Criteria for Collateral
- Proper seniority in collateral and ratings
- Clear budgets for rehab or construction
- Asset valuation – 3rd party valuations and/or appraisals
- Regular site inspections
Lending Fund Statistics