Group Home Loans

Financing for your Group Homes

Utilizing Klinkloans Hard Money is a simple and effective solution in helping you accomplish your long term goal of owning and operating a group home.

If you get a commercial or SBA loan through a traditional bank, you will face:

  • A lot of documentation and hassle
  • Long closing times
  • Lots of frustration all in between

We have two different types of ways you could utilize our financing for your group home:

Short Term Bridge Loan:

  • Close quickly on the property (as fast as 2 business days!) This allows your offer to become a lot more competitive!
  • Close with minimal paperwork (no appraisal, no asset documentation, and no personal income documentation required).
  • Utilize our loan to acquire the property. THEN you can pursue the takeout loan and don’t have to worry about missing your COE date!

Longer Term Construction and Bridge Loan (up to 2 years max)

  • Close quickly on the property (as fast as 2 business days!) This allows your offer to become a lot more competitive!
  • Perform any necessary construction/renovations to the home to meet your group home requirements and your refinance/takeout lender’s requirements to obtain a certificate of occupancy.
  • Obtain service agreements to being filling your residence with clients.
  • Once construction is complete, you have certificate of occupancy, and rent coming in, your process of obtaining a commercial/SBA loan for the long term will be MUCH easier and smoother!

Loan information:

  • Purchases are funded at 80% Loan to Value (LTV) or Loan to Cost (LTC), whatever is lower.
  • Renovation financing is typically set at 75% LTC, but draws are contingent upon Unpaid Principal Balance of the loan remaining under 80% LTV at sole discretion of the lender.

Loan Amounts Loan To Cost (LTC) for Renovations Loan Terms Draw Fees PrePayment Penalty
$75,000 – $2,250,000 75% LTC – some transactions may vary Up to 12 months – extensions available None None

  • Borrowers must first spend money towards improving the property, then a draw can be requested where we will reimburse based on hard costs / materials installed in the property. We are unable to lend on deposits for materials that have not yet been installed onto the property.

Here are the items we request to process a draw:

  • Invoices for items over $1,000
  • Lien waivers for items over $5,000
  • Spreadsheet or document showing a line item breakdown of costs spent for the draw
  • An estimated cost to complete the project
  • We will either request pictures or conduct an inspection of the property verifying the items installed.

Items needed to process a Group Home loan:

  • A signed loan application that we will draw up
  • A credit report for all borrowers dated within the last 90 days. 
  • A title commitment
  • Evidence of insurance for the property (or agent contact information)
  • We will want examples of borrower’s prior experience (addresses of projects completed – if applicable).
  • Pro Forma for the project OR Profit and Loss statement if it’s an existing business – last 3 years if applicable
I want to discuss financing my next Group Home project!

Contact us to see if we can help you overcome an obstacle and achieve your goals. 

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