Capitalizing a New Home Builder Business

Bankrolling any startup business is difficult enough. Capitalizing a new home builder operation is a leap forward in required funds. Typically, small businesses can be capitalized on a shoestring budget, for a new home contractor, just a little bit isn’t going to work. Most lending institutions require that the project is funded to the tune of 20% of fair market value. So if the new home contractor is building three new $200,000 homes, he’ll need 20% of $600,000 to successfully pull this off.

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