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Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
07/25/2022
Property Type
Property City
Salisbury
Property State
NC
Loan Term (months)
18
Lien Type
1st Mortgage
Payment Type
Interest Only
Construction Budget
$660,000
Construction Budget Funded
85%
Completed Value
$1,346,000
Loan-to-Completed Value
50%
Construction Project Scope
Construction Completion
Location Type
Suburban
Property Condition
Brand New Build
Number of Units
5
Deal Summary
In July 2022, i Fund Cities (iFC) funded a $675K construction loan for 5 homes in Salisbury, North Carolina, a suburb of Charlotte. The construction budget was $660,000, and the estimated completed value was $1,346,000. We funded 85% of the construction budget, and the loan term is 18 months. The client, a builder doing approximately 40 houses a year in the Salisbury area, came to us through a referral. The client was building all of his houses with cash. However, given the current market state (and a bit of unknown), he wanted to leverage some debt.
Key Loan Benefit to Borrower:
Through a portfolio loan for five houses, iFC was able to help this builder fund his new construction projects, without bringing any money to closing, and keep some of his cash in reserves. In addition, by giving this client an 18-month loan, he has ample time to finish the construction of these houses, which would not have been the case with another lender offering 12 months with the threat of an extension fee.
Funded By
i Fund Cities
Great F#*%ing Loans, Built By Investors For Investors
Builder / Borrower
Erik & iFC are allowing me to continue building in Salisbury, while keeping some cash in reserves. I am starting construction on five new houses without having to bring a dollar to closing.
Erik Eichinger
Loan Officer
Although rate volatility was at a high, we were able to close at the same terms we initially agreed upon from our first point of contact. And we closed two weeks after we agreed on terms.