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SOLVED: How New Construction Loans Keep Real Estate Investors Thriving

The inventory of homes for sale has fallen 40% from pre-pandemic levels. According to Lisa Knee, chair of EisnerAmper, this issue stems from the last housing market crash. “After the housing market crashed in 2008, the number of new homes being built plummeted. There were 1.35 million new construction starts in 2007, but that number dropped to just 554,000 in 2009. New construction starts didn’t reach 1 million again until 2014 and have continued to lag below the 1.5 million number.” The answer to success in this precarious market is new construction.

An Unbeatable Option

“According to the latest research from CBRE, commercial real estate lending activity edged up in the first quarter of 2022, despite rising inflation and heightened geopolitical risks.” Real estate investors haven’t stopped growing their businesses because when flipping homes became difficult, they turned to new construction. 

  • Location – New construction means you get to choose your neighborhood, and we all know the three L’s of real estate, right?

  • Costs – While material costs have fluctuated throughout the year, the return on investment and sales price has only increased.

  • Expenses – Most builders offer up to a decade of warranty coverage protecting your investment and decreasing costs for several years.
  • Sustainability – Modern homes are more energy efficient from building materials to appliances. They last longer and are more appealing to buyers.

Bonus Benefits

Unlike when you flip a home, with new construction you don’t find ridiculous 50-year-old issues hiding behind every corner. Forget about knob and tube electrical, hidden termite damage, foundation problems, bad plumbing, or those light switches that do nothing. 

There’s no risk of previous do-it-yourself upgrades from homeowners that typically come in the form of duct tape fixes. Imagine a home without roof leaks, water damage, an old septic system, or sewer pipes, and no hidden oil tanks. 

New construction is more straightforward; you have a plan and build to that plan. Right now, material costs don’t compare to the cost and the value of new construction sales. In many cases, there are no extra steps of demolition to deal with.

Get Your Appraisal Fee Waived!

Our team at Builders Trust Capital offers new construction financing with a highly experienced in-house staff. We’ve helped hundreds of investors save time, money, and frustration by providing construction oversight on budget review, inspections, and contractor vetting. We can provide you with the direction we’ve been giving our successful clients for years. And, we’ll even do it with no appraisal fees!

If you apply for a new construction loan in June and close by July, we will waive your appraisal fee! Call us today to apply, at 856-422-3232, or apply online now, https://builderstrustcapital.com/inquiry/.

Builders Trust Capital Client Success Stories

Partner with an efficient, personable team who has delivered $160,000,000 in real estate loans

Builders Trust Capital Success Story Photo: 1185 Route 9 South, Cape May Courthouse, NJ
  • Purchased $185,000
  • Rehab $150,000
  • ARV $475,000
  • Fix & Flip Philadelphia, PA
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $1,675,000
  • Rehab $450,000
  • ARV $3,955,000
  • Fix & Flip Cape May, NJ
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $550,000
  • Rehab $208,286
  • ARV $1,005,000
  • Fix & Flip Haddonfield, NJ

How to Finance Your Real Estate Investment

Our process is simple! We handle the entire loan process in-house. Loans are closed in as little as 10 business days.

Get Started

Fill in the form or call us at 856-422-3232 so we can contact you and begin working on your loan. We're local and happy to meet with you to learn your funding needs.

Pre-qualify

Complete your application and provide supporting documentation.

Proof of Funds

Increase your buying power with a proof of funds (POF) letter.

Loan Processing

Your appraisal and title work are ordered. Your application documents are reviewed. Our in-house processing team will contact you with any questions or additional documentation required.

Get Funded Now

After underwriting is complete, we make sure your closing docs are ready at the table and funds are disbursed timely so you can start your work without delay.

Testimonials

Photo of Alexandra Petruchenya

I appreciate your team's support during the entire rehab process for my property. This is my first deal, there were a lot of unknowns that came with that. The construction process intimidated me and held me back from doing real estate for several years. Kurt has been phenomenal, he was a wealth of knowledge. I appreciate how he gets in touch to talk through in-scope item completion and aligning on ways to ensure my construction draws are adequate. I'm thankful to have someone who has my business's best interests at heart.

Alexandra Petruchenya recommends Builders Trust Capital Oct. 2021
Photo of Sharina Jackson

I recently completed a cash-out refinance transaction with Builders Trust Capital. I would like to say thank you to Anthony for your partnership during this process, your excellent customer service and professionalism made the process easy for me.

Sharina Jackson recommends Builders Trust Capital Oct. 2021
Photo of Raphael Akinsete

If you are a newbie investor, I highly recommend Builders Trust Capital because your first few deals will impact your outlook on real estate investment. If you are a seasoned investor, I also recommend the company as they now offer products for both quick flips and long holds. This way you are covered in both your entry and exit strategy. As a longtime client of Builders Trust Capital I can testify that they are the real deal and there are genuinely good people behind this business.

Raphael Akinsete recommends Builders Trust Capital Oct. 2020
Photo of Kristian Latham

Just finished up my first project with the Builders Trust Capital team and wanted to share my appreciation for the good business. Success is often driven by effective relationships, and Builders Trust Capital’s partnership assisted me in strengthening my team all around. The process from beginning to end was smooth and efficient. They are a great partner to have to create opportunities for rookie and veteran investors.

Kristian Latham recommends Builders Trust Capital Aug. 2020
Photo of Timothy Rosenblum

Builders Trust Capital lives up to its name. They have truly been a partner to me with my projects. The process from underwriting to construction inspections has never wavered from their initial promise and Ive always been met with professionalism and efficiency. Rare in this space.

Timothy Rosenblum recommends Builders Trust Capital Apr. 2021
Photo of Mike Bonadies

Builders Trust Capital is an incredibly responsive and flexible lender for RE investors. They have been able to work with my unique situations and helped us close on properties no one else could. They know their local area well and can offer guidance. I highly suggest them.

Mike Bonadies recommends Builders Trust Capital Apr. 2021

Ready to discuss your funding needs?

Just contact us by phone 856-422-3232. If you prefer, send us a message and we’ll contact you shortly. Let's get started working together.

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