Builders Capital

1st loan:So my first loan with them went ok. I would give them 4 stars due to the very easy draw process. BUT at the last moment when we were about to close the loan, they changed the terms on us and told us that we had to come in with more money because their day one loan to value was too high. My lender contact Kendra never mentioned a day one LTV cap when we signed the loan offer. We were not happy.2nd loan:Our 2nd loan was a bridge loan to construction loan. Again we used Kendra as our contact. And again she did a bait and switch on us. It was relatively big loan and there was a large construction hold back of which a substantial amount was for soft costs, architecture engineering permits etc. Again, she never mentioned that we can't draw on the loan until we get building permits. We didn't find this out until a week before we were closing and I had already removed all my contingencies and we could not go to another lender in time to close, which meant I had to come out of pocket $120,000 to fund all the design and permitting costs which we were not expecting. Additionally, we built in an interest reserve in this loan and we were very surprised to find out (after we closed the loan) that they don't allow use of the interest reserve until there is building permits in hand. In fact, I had an email from our transaction coordinator Callie confirming that we didn't have to pay the interest payments due and they would be taken from the reserve. So add another $40,000 in funds we were not expecting to fund.Then comes then construction part of the loan. When we were ready for construction to start (after obtaining our permits), they told us that they have to review the loan again. Ok? What's the point of an acquisition to construction loan if they won't give us the construction part loan after we're done with the plans and obtained permits? We paid over $80,000 in fees to them at acquisition for the construction part of the loan and they only initially loaned us $400,000. The other $2.5m was a hold back for construction.So, of course they said we needed to do another appraisal which came in substantially higher than the original appraisal when we acquired the property. That took a month out of our timeline.Then senior management had to review everything and that took two months. Then they came back and said there's not enough time left in our loan and they will not loan us any money for the construction. We had nine months left on the acquisition/construction loan when we got our permits. Plenty of time to build the apartments but It took them three months in delays to figure out that they didn’t want to release the construction funds, even though I paid for that portion of the loan and had loan docs in place. Bottom line: we obtained a $400,000 acquisition loan and paid these crooks $80,000 in points and then when it was time for them to release the money for construction, they told us to pound sand.I've been in real estate development for over 25 years and this lender is the most crooked group of people I've ever dealt with.3rd loan:And then comes the third loan. We had a signed agreement to fund with full approval from the committee (according to Kendra) and we were just awaiting building permits. The loan to value was substantially low (something like 60%). Once we sent them proof of the permits, I received an email from a man named Brian Ruff (who was new to the company) and was Kendra's boss. He said that the loan was never approved at committee and they are not planning on funding this loan because they don't like the location.Needless to say, I will never work with this lender again.

So my first loan with them was ok. I would give them 4 stars due to the very easy draw process. BUT at the last moment when we were about to close the loan, they changed the terms on us and told us that we had to come in with more money because their day one loan to value was too high. My lender contact Kendra never mentioned a day one LTV cap when we signed the loan offer. We were not happy.Our 2nd loan that was a bridge loan to construction loan. Again we used Kendra as our contact. And again she did a bait and switch on us. It was relatively big loan and there was a large construction hold back amount of which a substantial amount was for soft costs, architecture engineering permits etc. Again, she never mentioned that we can’t draw on the loan until we get building permits. We didn’t find this out until a week before we were closing and I had already removed all my contingencies and we could not go to another lender in time to close, which meant I have to come out of pocket $120,000 to fund all the design and permitting costs which we were not expecting to have to do.Additionally, we built in an interest reserve in this loan and we were very surprised to find out (after we closed the loan) that they don’t allow use of the interest reserve until there is building permits in hand. In fact, I have an email from our transaction coordinator Callie confirming that we didn’t have to pay the interest payments due and they would be taken from the reserve. So add another $40,000 in funds we were not expecting to fund. 0 stars on this loan.And then comes the third loan. We had a signed agreement to fund with them with full approval from the committee (according to Kendra) and we were just awaiting building permits. The loan the value was substantially low (something like 60%). Once we sent them proof of the permits I got an email from a man named Brian Ruff who is new to the company and is Kendra’s boss. He said that the loan was never approved at committee and they are not planning on funding this loan because they don’t like the location. -1 Stars on this loan.Needless to say, unless they change their bait and switch practices, I will be going with another lender on my future deals.

I used Builders Capital for a 5.2 million dollar project in NE Portland called Going Street Commons. The project contained 11 net zero homes in an intentional community. It was scheduled to take 11-12 month, but in 2020 when COVID hit Builders Capital stopped funding draws on time and for the full amount of the approved draw, which caused the project to shut down for 5 months. During that time I had outstanding sub invoices that could not be paid, which caused a cascading affect on the project's finances. We had to file a lien, which then put us into default. We (GSC) then went into an agreement (good faith agreement) with BC to finish the project with the understanding that GSC would removed Lien. The project then was back on schedule to be finished up in 4-5 months. Once the project was finished up and homes started closing BC became predatorial. When it came time for the final closing they added back in all the fee's they agreed to wave in the good faith agreement. Don't trust this BANK, make sure to check all their references. Please feel free to email me with any questions.

These guys did exactly what they said and worked through multiple problems that to be fair, were caused by my other lender. These guys are professionals and know what they are doing. Very sophisticated and well capitalized.

I have to say, these guys have me a chance when other lenders would not. This eventually allowed me to grow my business to a highly successful business building hundreds of homes. I'm grateful I met Builders Capital.

I use Builders Capital for Construction Lending and my Fix and Flip loans. They are by far the fastest and most knowledgeable in the market. They also have one of the best draw processes I've used. Its online, simple, fast and easy. What else could you ask for?