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California, especially Northern California is having a severe housing shortage. Builders have not built enough homes to meet our markets demand. There are many reasons for this shortage, however, one main reason is that they are lacking small builders.
Why?
Smaller builders simply cannot get construction loans. Banks are not interested in lending money to them, they prefer to deal with larger builders; who build track homes instead of small build-outs.

Moreover, smaller builders typically do not have the financial sheets banks want. They cannot meet the banks tight lending guidelines.

I recently helped a local developer, who's had a tough time getting loans from the bank. The banks told my client that his debt was too high, he didn't have enough cash reserved, and too many projects going on; the typical bank jargon.

The developer faced a dilemma, he needed the funds to move his project forward, and without the money he would be detoured; he would not be able to pay his crew or buy building materials.

So, I brought an investor to this developer's job site. After the developer and the investor met, the investor felt very confident that the project will be sound and profitable, he decided to lend on the spot.

As a broker, I work with many investors and they love the opportunities to put their money to work as long as projects themselves will have solid returns. My investors make common sense decisions rather than strict data driven decisions.

It is a win-win for everyone: investors will get returns on their money, builders make their profits, and people have homes to live.

If you or someone you know is looking to build homes, don't be frustrated if the banks turn you down, let me help you get a construction loan.