Author name: Enact Partners

Revolving Construction Loans: Rolling Out a New Product

Enact Partners recently unveiled a brand-new product for residential subdivision construction projects: revolving construction loans. Normally, loans for large subdivisions are split into phases. The Fund’s recent 63-unit Merced project is a good example. We funded six separate loans to finance construction of about 10 homes each. The builder constructed 10 spec homes at a […]

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Loan-To-Value: A Simple Equation with Complicated Implications

Loan-to-Value (LTV) is a private lender’s most important metric when deciding if a loan is safe or not. What does it mean, why is it important, and what is Enact Partners’ philosophy? What Does LTV mean? Loan-to-Value is calculated by taking the loan amount divided by the collateral value. The result is a percentage that

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Building Wealth by Building Homes: Why Are We Comfortable with Construction Lending, You Ask?

Most lenders are afraid of land and construction loans, and for good reason. Risks include entitlement risk, cost overruns, schedule delays, mechanics liens, changes in market conditions, and lease-up/sales risk. However, with deep experience in development, construction, and construction lending, we understand the process and see it as an opportunity. How Does Enact Partners Mitigate

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