Houston Construction Lenders for Residential Investment Property

I Fund Cities, an alternative lending platform, funded a $5,924,734 senior lien position ground-up construction loan for a new home development in Houston, TX. We funded 95% of the $6,220,275 construction budget, while the Borrower contributed 5% cash at closing. The completed value was estimated at $8,750,000 so our loan-to-completed value was 68%. This new construction Borrower came to us as a referral from a local balance sheet lender who did not have the capacity to fund this scale of project all at once. The Borrower had a 49-unit subdivision underway. They had already begun work on the 49 lots, but only had funding in place to build on 24 of them. They still needed funding to build on the additional 25 lots. However, the Borrower was maxed out on their exposure from their local bank. Another alternative lender they spoke with was only able to fund 10 builds at a time. iFC was able to fund all 25 remaining deals at favorable leverage. In addition, we were able to credit the Borrower for already completing some of their budgeted line items. This allowed us to perform a draw at closing, which helped the Borrower maintain their liquidity in good standing for the project. Because we could offer this Borrower such creativity and flexibility in funding, it gave them the ability to execute multiple projects at once, ultimately saving them time and money, and helping them to reach their real estate investment goals more quickly. The loan term was set at 12 months. This ground-up construction loan was funded in December 2023.

I Fund Cities, an alternative lending platform, funded a $672,435 senior lien position ground-up construction loan for 2 detached townhomes in Houston, TX. We funded 100% of the $596,100 construction loan. The completed value was $1,030,000 so our loan-to-completed value was 66%.  This new construction Borrower came to us by way of a referral. The Customer was receiving financing from a local broker and some private money. They had received a short-term private money loan to do the predevelopment work on the property. They were looking for funding for the vertical construction of their project of two detached townhomes. They had already completed the first phase of construction and wanted to get reimbursed for the work completed. iFC was able to consider the value-add work done to the property, which included rezoning, along with the soft costs that had already been completed. With this consideration within the loan, the Client was able to pay off the remainder of their private money loan at closing. Then, i Fund Cities moved forward in funding 100% of the vertical construction budget on these properties. We not only provided this Client with an on-time closing but did so with terms consistent with what we had given them on Day One. The Borrower plans to sell the property upon construction completion. The loan term was 12 months. This ground-up construction loan was funded in September 2023.

I Fund Cities, an alternative lending platform, funded an $854,167 senior lien position ground-up construction loan for 3 townhomes in Houston, TX. We funded 100% of the $825,000 construction budget. The completed value was estimated at $1,436,000 so our loan-to-completed value was 58%. This new construction Borrower had existing debt on their property and they wanted to get financing quickly to keep their pipeline moving at their own pace. By working directly with i Fund Cities, this Borrower had access to the people intimately involved in his loan process, which allowed him to get the answers he needed quickly. i Fund Cities was able to help this Borrower by providing a loan that considered the value-add already done on the property. This included doing the re-platting and getting the approvals to build 3 townhomes, as opposed to building just one single-family home. We moved quickly and efficiently for this Borrower, closing with the same terms we agreed upon from day one. We even covered a portion of the closing costs! The Borrower plans to sell the property upon completion. The loan term was set at 12 months. This ground-up construction loan was funded in November 2023.