Oregon Construction Lenders for Residential Properties

Lima One Capital, a lender for residential real estate investors, funded a $2,860,000 1st lien position ground-up construction loan for 2 spec homes in Lake Oswego, Oregon, a suburb of Portland. We funded 100% of the $1,670,000 construction budget and 65% of the $1,800,000 purchase price, while the Borrower contributed 35% cash to the purchase at closing. The completed value was estimated at $4,400,000 so our loan-to-completed value was 65%. The Borrower was an experienced builder. The initial financing that they had fell out, leaving them with less than 4 weeks left on their contract to purchase the land. If they couldn’t find a lender to close the deal before that time expired, the builder would lose significant earnest money. So they looked for another lender who could save the deal while offering strong leverage. The Builder decided to do their first loan with Lima One. We were able to facilitate 2 appraisals on a tight timeline and close the loan before the land purchase contract expired. Plus, the builder got 82.5% blended loan-to-cost and 65% loan-to-value leverage, providing the cash needed to keep the deal running. The builder was impressed by Lima One’s team and process and has continued to do more business with us because of the outstanding customer service. The Borrower plans to sell the property upon completion of the vertical construction. The loan term was set at 13 months. This private construction loan was funded in October 2022.

Blue-inc Capital, a private lender based in Oregon, funded a $265,000 construction loan for a manufactured home in Springfield, OR. The purchase price was $90,000 and the construction budget was $180,000. Blue-inc Capital funded 95% of the purchase price and 100% of the construction budget in 1st lien position. The Borrower contributed 5% cash. The completed value was $350,000 so the loan-to-completed value was 75%. The Borrower purchased a vacant residential lot. The lot was ready to go for building a new home. They estimated it to take about 2-4 months to place the manufactured home and 3-4 months to make a sale. The newly manufactured home offers approximately 1444 square feet, 3 bedrooms, and 2 full bathrooms. The residential building lot was purchased for $90,000, the manufactured home is approximately $110,000. Infrastructure and placements costs are approximately $70,000. Our loan, in the amount of $265,000 was over 95% of the cost, land, and home, due to the completed value having a significant upside. The Borrower had fair credit. They plan to sell the property upon completion. The interest rate was 10% and the loan term was set at 12 months. This residential ground-up construction loan was funded in August 2022.

Blue-inc Capital, a private lender based in Oregon, funded a $170,000 construction loan for the purchase of a single-family residence in Chiloquin, OR. The construction budget was $158,000 and Blue-inc Capital funded 100% of the construction budget in 1st lien position. The completed value was estimated between $265,000 to $300,000 so our loan-to-completed value was 56% to 64%. The Borrowers formed a collaborative partnership to build speculative new homes in the area. The home will offer 3 bedrooms and 2 bathrooms with a one-car garage. The lot was owned free and clear. With recent infrastructure improvements and plans, the subject property has a building lot value of approximately $25,000. The Borrower had poor credit. They plan to sell the property upon completion. The interest rate was 10.50% and the loan term was set at 12 months. This residential ground-up construction loan was funded in May 2022.