Toby from Global Integrity Finance explains how builders can get 85% loan-to-cost on ground-up construction in Dallas-North Texas, covering land, permits, and building costs. Typical deals offer 60-65% of after-repair value with 35-40% profit margins and require only 15% out of pocket.
Hey everybody, this is Toby with Global Integrity Finance, and today I want to talk to you about something that we're extremely passionate about here at Global Integrity Finance: ground-up construction. As you've known, the fix-and-flip industry has gone gangbusters. It is blowing up in all major cities, in all states nationwide. But one of the things that we're seeing, especially here in the Dallas metro area, North Texas, is that The inventory is getting thinner, meaning that everybody that has got into the, the industry for fix and flip is taking up a lot of the inventory and progressing into ground-up construction. Anywhere you drive, whether it's Frisco, Little Elm, Anna, Melissa, all these areas that used to be tons and tons of farmland is now subdivisions, developments. And we're seeing that with all the major industries coming into the North Texas area, that new housing is on the rise. Fort Worth was just announced 30 days ago as one of the fastest growing cities in the nation in new home development. So with that, Global Integrity Finance is saying, hey, we need to get into this. Ground-up construction is a huge, huge opportunity for any and all experienced flippers and builders who are looking to really capitalize on the demand. One of the things that we've done is take a look at this and said, What do we need to do to be that go-to lender to ensure not only profitability and success, but to give a good product for that client? Number 1, we go to 85% loan-to-cost. What does that mean? That means the purchase price of the land, the soft cost, and the hard cost. Soft costs are your attorney fees, your specs and plans, your architectural drawings, anything like that that's kind of behind the scenes getting things ready to go. And then the hard cost is the actual construction costs, materials and labor, labor to build that up. With that, we can then put those formulas together and say, this is your cost to build this deal, and we can loan 85% of that up to 70% of the ARV. And we hardly ever run into a 70% ARV factor. Normally when a builder's building in the right area with the right pricing, they're closer to 60-65% of that after repair value with a solid 35-40% profit. So with that in mind, we want to go out and we want to let everybody out there that is in this circle, in this environment, in this network of building ground-up constructions, we want to be your go-to lender. We want to be the one that will help facilitate your processes, financially, through coaching, mentoring, uh, guidance, profitability, success, and help you go through each stage of that to expedite your project. We want to take you from beginning all the way to end on this project and then immediately jump into the next one with you. The more deals you can do, the better everybody is, and the simpler that process is, the more profitable it will be. We've come together with a great team that gives you a real streamlined checklist, a real streamlined appraisal. Our rates are extremely competitive, and 99% of the time the only cost out of pocket you have is your closing costs and, and the, and the lot. 15% is really all you're out on that deal, and that is huge in today's market. So we want to have you give us a call, ask us how do you get embedded into our success track record and get embedded with our team to ensure profitability and success on your next project. Give us a call, 214-548-5190, or go to our website, globalintegrityfinance.com, and hit Apply Now. We will get back with you immediately, put your terms together, and let you know how quick we can get this project funded to get you on the road to success.
