Building a home is an exciting time for both the buyer and the builder. It’s a business opportunity for the builder and the chance to start a new life for the buyer. However, what solutions are there for the awkward period of time between the home being built and finding the right buyer for the prospective house? Spec construction loans are a valuable asset to this process because it takes the dependency off of both the builder and buyer. Here are the many benefits that a spec construction loan can offer. Be sure to consider all of these advantages as you sort through your options.
You have a vision for the spec home you intend to build in your head. Now all you need is the proper financing to get things rolling. However, you need to consider factors such as construction equipment, materials, labor, home utilities, tools, and much more. Because of that, you might find your budget a bit thinner than the cost that it will take to make your dreams a reality for this home. Not to mention, you don’t want to fork over your money in order to build it. That’s why a Spec construction loan can be such a tremendous asset to your project. It can give you the necessary funds to put everything into place. You’ll be able to afford all the necessary costs in order to place the finishing touches on your spec home. Be sure to reach out to a trusted spec construction loan lender to make sure you’re receiving your loan from a reliable and trustworthy company!
2. Expedited Process for Your Home
The painstaking process of raising enough funds for your project can lead to the process ending before it even begins. You might try different scenarios in order to gather the proper funds on your own, but that length of time can leave you demoralized. You might find yourself becoming frustrated by the length of time that it takes to get everything done. Receiving a spec construction loan helps you to expedite that process. The money won’t be a problem anymore now that you have a loan for it. The process can now continue with your construction planning and shorten the time window it would usually take. Better yet, you won’t experience any major setbacks if a portion of the project takes more money than expected. Since the loan is in place, you’ll be good to go!
3. Flexibility on the Loan
Imagine the horror of getting halfway through your construction project and realizing that one portion takes more money than you had anticipated. Usually, that kind of shocking price might cause the entire cooperation to stop at a screeching halt. However, one of the biggest perks to spec construction loans is that they can be adjusted as need be. If one portion of the project is a bit pricier than you thought, then your trustworthy lender can adjust the loan amount accordingly. That means fewer setbacks and the opportunity for you to build the house in your desired timeframe.
4. Control Over Your Project
One of the biggest reasons spec home building is becoming so increasingly popular is because of the freedom they obtain to do what they want. Everything from setting the schedule, customizations, project plans, materials, and much more is all thanks to the spec builder process. You can hire all of the sub-contractors for your project to ensure you’re using people that you can trust. This is especially beneficial to builders with years of experience and know-how. They get to call the shots and make adjustments as they see fit. If halfway through construction you decide to make alterations, you have the ability to do so. Of course, if you’ve found a buyer before then, you’ll have to seek their approval before doing so.
5. Wiggle Room
Your business merely needs a loan for the sake of getting a “jumpstart” to your spec home building project. After that loan is offered and the houses are being built, the sales will come pouring in for your small business! Receiving a spec construction loan grants you the opportunity to fund your project leading up to the time when the sales on each home are completed. Better yet, each service is customized to the exact needs and specifications of your ongoing spec home building venture.
6. More Cash Flow for Your Business
The name of the game for any business is cash flow. The attempt at having more money coming in than what’s going out. That way, you and your business can stay in the green with every project. Finding a trusted construction loan lender means teaming up with someone that legitimately cares about your business. They want to fund all of your ongoing projects so that your business can see a successful rate of return. They merely provide you with the money so that you can go out and do what you do best: build prospective homes.
Plus, lenders such as Shepherd’s Finance, LLC will take the fees out of your loan so that you don’t have to pay them upfront.
Apply for Your Spec Construction Loan Today!
Now that you’ve seen all the benefits of receiving a spec construction loan, it’s time for you to apply for yours today!
Be sure to read this article for more information on housing prices vs lot prices, both now and in the future.
For more inquiries, please reach out via our contact us page and we’ll be happy to assist you further!