Land Equity Cash Out and New Construction for SFR Builds in Gastonia, NC

I Fund Cities, a direct private lending firm, funded a ground-up construction loan for two single-family homes in the Charlotte, North Carolina metro area. We met the client at a weekly real estate meetup. He owned several empty lots in the Gastonia area but was using a private individual investor/funder and he was only able to build one house at the time. We were able to take his equity in the purchased lots that he owned free and clear and help him fund two new construction projects. He did this not only by using zero money out of his own pocket, but the client also walked away with CASH at CLOSING! The key loan benefit for this borrower was that he was able to scale! He can now build multiple projects at a time. The purchase price of the land was $15,000. The construction budget for the 2 homes was $130,000. We funded 85% of the construction costs. The value upon completion was expected to be around $225,000 which puts our loan-to-completed value at around 60%. The loan term was set at 12 months. This equity cash-out loan was funded in April 2022.

Customer Feedback:

“iFC has unleashed us as builders. Previously, we were building one or two new constructions at a time, we are now able to do 5 or more at a time!”