PACE financing works great for rehabs or new construction. It can be a powerful tool in your capital stack for a project. PACE can typically lend the lesser of 30% of appraised value (at completion/after rehab) or up to 95% loan to value. In most cases, qualifying PACE measures can be as much as 30% of total project costs, meaning there is plenty of eligible costs to reach the 30% of appraised value figure.
Lets say you have a project with a bank financing 80% of the project costs. PACE can reduce the 20% gap you have to 5%. This essentially can reduce the amount of equity you need to bring to the table for your deal to be completed. AND the PACE portion of your deal has no personal guarantees, no upfront costs, and is treated as an operating expense so you can write off interest and principal payments.
PACE financing is a powerful new tool you can add to your projects to make them more successful. Contact us to learn how we can help you implement it in your next project.