Speaker: Stephen King, Account Executive , Easy Street Capital
What are some of the dynamics driving home building in Texas?
Stephen King: So in the past 2 to 3 years, there has been a huge migration to the state of Texas at which increased the need for residential new construction, as well as big companies making Texas as their headquarters, which has also been a huge dynamic piece for the development of ground up construction.
Which parts of Texas are seeing the most residential construction activity?
Stephen King: Houston, Dallas and Austin have seen the most influx in residential, new, new construction, as well as cities near the coast like Galveston and Corpus Christi has also seen a huge influx in the last 2 to 3 years.
What are some common trends with home building in Texas?
Stephen King: The most common trend is HOA communities in the state of Texas. This is, has been a huge rise in the last 3 to 5 years. Anywhere from a couple hundred homes to a couple thousand homes being under one community, one HOA facility as well as in city infilled lots. Instead of doing a single family, most are converting into a duplex or quadplex. So they make the most of what the land has there.
Tell us about your construction lending program in Texas.
Stephen King: So our ground up construction at Easy Street includes being able to finance the total transaction up to 82.5% with still abiding at 65% of the after completion value. We have a 48 hour draw process and we only do vertical financing meaning it has to be infield in a metro area and all you need is one ground up construction completed in the last 2 to 3 years to qualify as well as a 660 credit.
