A NEW SOLUTION FOR BUILDER DIRECT FINACING

Michele Raab-Francis of Safe Harbor Capital Group and Tom Legere of Best Lumber have joined together through a referral network to extend a solution to the builder’s financing needs.
They have a concept that would provide builders acquisition and development financing for their projects to buy land and materials in tandem with extensions of credit lines and also provide easy access to homeowner loans.
Feeding each other’s company with referrals for credit, mortgages and building materials appears to be the benchmark for networking their plan. According to Ms. Francis and Legere, the plan does not involve any type of merger or joint venturing. They both agreed that it is way to utilize their large numbers of contacts. By combining their products and resources they will be able to accommodate their most valued customers. The success of this program has already been felt in both the Speonk and the Washingtonville location of Best Building Supply.
In addition, she said builders can concurrently qualify for multiple home financing. She pointed out some highlights of the program including: credit decisions made within 72 hours, financing up to 90 percent of the total project cost or 80 percent of the LTV, multiple loans on a single development, lot draws up to 60 percent of land value and land equity and pre-paid costs can be used a down payment.
To further explain the playing field, Ms. Francis explained, “The middle market builder has been an underserved segment among larger, mainstream banks. Without capital these developers are unable to purchase the land and materials needed to complete a sold, spec or model home and, most importantly, expand their business.”
In addition to this builder direct lending program, Safe Harbor Capital Group will continue the hands on service right to the home buyer. Safe Harbor Capital and Best Lumber can help builders and even the individual home buyer with all of their financing needs.