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Can You Secure a Hard Money Loan for a New Construction in San Francisco?

By February 25, 2020June 29th, 2023Blog, hard money lenders in San Francisco
hard money lender in San Francisco

Many people associate hard money loans with fix-and-flip real estate projects, but it is important to know that hard money loans can also beutilized for new construction projects. In fact, hard money loans can be utilized to purchase multi-family residential properties, commercial properties, etc. If you are looking to apply for a hard money loan with the intent of using the funds for new construction, take the time to read the information below.

Assessing the Location of the New Construction is Extremely Important

There is no doubt that one of the most crucialissuesassociated with securing a hard money loan for a new construction project in San Francisco is the specific location. Why? Because it is quite common for manyhard money lenders to only want to work with applicants who haveconstruction projects that are close enough for the lenders to visit in person. You may be surprised at this preference, but it is due to the fact that hard money lenders are not like traditional banks. Hard money lenders are not comprised of overpaid middlemen and layers of bureaucracy. Most hard money lenders want to collaborate with you to ensure the project is done successfully and efficiently. This is because hard money lenders have their funds on the line and want to get a return on their investment in you.

Be Prepared for Certain Types of Fees

For a typical fix-and-flip project, we are dealing with a property that already has a home or other structure built on it. As a result, there are not many ancillary expenses associated with a hard money loan. Once you have your loan secured, you can purchase the property, complete the renovations,then sell the home for a profit. However, when you partner with a reputable hard money lender in San Francisco  such as PB Financial Group on a new construction project, there are certain fees that cannot be avoided.For example, if you intend to purchase an empty lot, there are an array of fees associated with setting up sewer, water and electric lines, architectural review and permitting costs, etc. Most hard money lenders do not cover these types of fees and related expenses. This means you will likely be on the hook for these costs and should be included in your overall estimated budget for the construction project.

Become Familiar with Potential Down Payment Obligations

For a typical fix-and-flip project, many hard money lenders mayask for a downpayment. However, for new construction projects, there is a higher likelihood of a down payment being necessary due the inherent risks associated with constructing a new home, commercial building, etc.This is why you need to have a thorough understanding of what is expected before you move forward with a hard money loan.

Interested in Securing Hard Money Loan in San Francisco? Contact the Experts at PB Financial Today  Constructing a brand-new home or commercial building is a monumental undertaking, especially if you need to determine how to design the structure to comply with various codes and regulations in San Francisco. PB Financial Group Corp is a premier direct hard money lender in and around the San Francisco area. Our goal is to satisfy your financing needs in a timely manner, may it be purchasing or refinancinga property or providing a bridge loan. We have simplified our private money loan, hard money loan approval process and our broker approval and look forward to helping you succeed. For further information or to schedule a consultation please contact PB Financial Group today at 877.700.3703 or visit to learn more.

PB Financial NMLS #357614/CalBre #01522495

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