84440 Resource 78777 78860 1071 1107958813447 1215930649544 Controlled Commercial Financing and Underwriting Commercial Construction Loans A Developer Usually Has to Contribute 20% of the Total Cost of a Commercial Project <p>Suppose a developer wants to build a commercial project, say a large retail center.&nbsp; The commercial construction lender, typically a bank, is <span style="FONT-WEIGHT: bold; FONT-STYLE: italic">not</span> going to cover 100% of the costs and take all of the risk.&nbsp; The developer has to have some skin in the game.<br /><br />In order to get construction financing on a commercial project, the developer is typically required to cover 20% of the total cost of the project.&nbsp; This contribution often takes the form of equity in the land.&nbsp; Since the land usually represents around 20% of the value of an improved property, the bank usually wants the developer to contribute the land free and clear of any mortgages.<br /><br />Many times, however, the developer may have a small mortgage on the land, and the developer's equity may take other forms.&nbsp; He may have paid for all of the architectural and engineering work out-of-pocket.&nbsp; His own construction company may have graded the property.&nbsp; Finally, the developer may be required to simply bring cash into the deal at closing.&nbsp; For example, Blackburne &amp; Brown recently approved a $2 million construction loan on a condo project.&nbsp; One of the conditions of this commitment was that the developer had to bring in $250,000 in cash at the closing.<br /><br />You can apply directly to hundreds of commercial construction lenders on C-Loans.com<br />&nbsp;<br /></p> 9 application/xml false commercial construction lender commercial construction loan commercial financing commercial loan commercial mortgage commercial real estate loan mezzanine lender mezzanine loan preferred equity C-Loans Commercial Mortgage Lender Databank Apply Directly to Hundreds of Commercial Construction Lenders http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 johngaudio 216.87.92.57 false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web