In the month of May we have seen a tremendous increase in our loan volume and in our applications. With the high demand for homes and an increase in prices, many of our clients began to find opportunities in cities like Newark, where they found many homes at discounted values with tremendous upside potential. Our average bridge loan size for this month was $373,000, of which each included a B-piece construction loan. Each loan financed 100% of the borrower’s construction budgets, with an average of $142,000 per construction loan.
We also saw a surge in our 30-year fixed rate loan programs. Many clients were looking for cash out refinances growing their cash piles, in order to aggressively invest in new projects. Our loan originators simplified the loan process and saved money for our clients by getting creative and suggesting portfolio refinances, which our clients loved! Many clients were also able to take advantage and purchase properties quickly and easily, as a result of this program having a fast-closing time with little required documents. With a massive increase in demand, we decided to increase our office size and expand the SCF team!
The 90 Program:
As always, we are listening to our clients, and figuring out how we can adjust our programs to better suit their needs. This past month we released The 90 Program. This program is meant to finance 90%
of the borrower’s costs requiring them to bring a minimum amount of cash to the deal. This includes a 100% construction loan, and up to 85% of the purchase. Check out our website to see how it works.
Around the country the volume of home sales slowed for the 3rd consecutive month, leading prices of homes to jump 19% year-over-year in the month of April. This is amazing for all of our borrowers with existing loans who are ready to sell and looking to make a hefty profit on all of their flips. There was also a large increase in the prices of building materials around the country in the last few months. This has led to many fears about inflation and the rise in interest rates, which the fed has yet to change policy on. The number of homes sold that have not begun construction also rose 16.5% in the month of April, according to The Real Deal. This is amazing as it illustrates that buyers will buy properties at any condition and all the seller needs to do is obtain the initial financing to purchase the deal (from SCF of course)!
FUNDING 90% OF YOUR ENTIRE PROJECT!
Here's how it works:
100%- How much of your construction costs we will fund
+ 85%- Funding up to 85% of your purchase price
= 10%- The amount of money you need for this project
Salman Capital Funding
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