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By Builders Capital

W.R.A.P. stands for Warehouse Revolving Asset Pool. From horizontal land development to vertical construction, Borrowers can reuse capital over a 24 month period without any additional origination fees.

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Details

24 months with an option to renew at 12 months

Loan Size: $5MM - $50MM

Loan To Value: Up to 65%

Loan To Cost: Up to 85%

Liquidity: 5% of total commitment

LOAN GUIDELINES

TERM
  • 24-months with option to renew at 12 months
  • LTV (Loan to Value)
  • Up to 65%
  • PURPOSE
  • Development, lot bank, or vertical construction
  • LTC (Loan to Cost)
  • Up to 85%
  • PROPERTY TYPE
  • Entitled Land
  • Single Family
  • Condo
  • 2-4 Unit Properties
  • Townhouses
  • BORROWER EXPERIENCE
  • Proven track record with a similar scope project
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    LOAN SIZE
  • $5,000,000 to $50,000,000
  • – Maximum $3M Property/Lot

    – Maximum $15M per allocation/$30M** Condo

  • See Borrower Requirements for concentration limits
  • FUNDS, CLOSING & PAYMENTS
  • Cash out allowed if within LTV requirements
  • Monthly interest payments or interest reserve
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    GENERAL REQUIREMENTS
  • All lending for investment purposes only
  • Interest calculated on drawn balance
  • Construction draws based on inspection report
  • No rural properties
  • 1st Lien Position at all times
  • Available capital is reused as many times as you can use it throughout the Revolving period.
  • Convert Development to Vertical without additional credit qualifications.
  • All loans to include a 15% Temporary Reserve Capacity for unplanned needs.
  • BORROWER REQUIREMENTS
  • Minimum 700 credit score considered with compensating factors
  • Reserve requirement: Borrower / Guarantor must demonstrate a minimum aggregate 5% liquidity
  • relative to all BC committed loans

  • Personal Guarantee preferred: Limited Guarantee on case-by-case basis
  • Quarterly/annual covenants
  • Concentration limit per guarantor is $50,000,000 on total portfolio
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    Continue down to Documentation Requirements

    DOCUMENTATION REQUIREMENTS

    Getting Started

    BORROWER / GUARANTOR

  • Signed Estimated Loan Terms
  • Completed Loan Application
  • Borrower/Builder/Guarantor Resume
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    PROJECT

  • Completed Builders Capital WRAP Project Questionnaire
  • Purchase and Sale Agreement w/ All Addendums (if Purchase)
  • Construction Site Plan, Elevation Drawings, Floor Plans
  • (including dimensions) and plat map (if necessary)

  • Preferred Title Insurance Company & Contact
  • Preferred Insurance Company & Contact
  • Breakdown of Costs Already Paid into Project
  • Builder Resume (if different from Borrower/Guarantor Resume)
  • Description of Permit Status
  • Getting Funded

    BORROWER / GUARANTOR

  • Most Recent Two Months Bank Statements (Borrower & Guarantors)
  • Most Recent Two Years Tax Returns (Borrower & Guarantors)
  • Borrower Entity Documents and Appropriate Business Licenses:
  • – Legal Filing Documents

    – Operating Agreement & Certificate of Formation (LLC)

    – Articles of Incorporation & Bylaws (Corporation)

    PROJECT

  • Project Documentation Varies Based on Scope of Work Performed
  • under the facility

    – Contact Builders Capital for Specific needs based on proposed

    project

     

     

    *The list above shows Borrower provided documentation. All third-party order outs still apply, including standard appraisals, title and 3rd party project reviews.

    **Non rural markets only.  |  Effective Date: 5/25/2022 – Product Guidelines are subject to change at any time.

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    Overall Lending

    $6.0 Billion

    Active Loans

    $3.5 Billion

    New Capital Available

    $700 Million