Ground-Up Construction Loan for Single-Family Home in Eagle, ID

Funded by Lima One Capital

704,300

Deal Details

Private Loan Type

Residential Ground-Up Construction

Approx. Funding Date

07/01/2022

Property Type
Single Family Residence
Property City

Eagle

Property State

ID

Loan Term (months)

13

Lien Type

1st Mortgage

Payment Type

Interest Only

Construction Budget

$597,558

Construction Budget Funded

100%

Completed Value

$1,005,000

Loan-to-Completed Value

67%

Construction Project Scope

Vertical

Location Type

Rural

Property Condition

Brand New Build

Occupancy at Closing

Vacant

Deal Highlights

90% Loan-to-Cost, including land purchase
No interest paid on undrawn construction funds
1 of 3 consecutive builds closed with Lima One
Interest-only fixed rate loan

Deal Summary

The Opportunity

On this build in the Boise suburbs, the investor had purchased the lot for $185,000 and planned for a construction budget of $597,500. The new construction loan from Lima One would cover 90% of the blended loan-to-cost for both the land and the property. The builder had a contract on the three-bedroom, three-bathroom home for $970,000 before construction was complete, ensuring a $200,000-plus profit on the build. This build was one of three in Eagle, Idaho, that this experienced builder financed with Lima One Capital in early 2022 in the heart of a market with the strongest home price appreciation at the time.

The Solution

Lima One’s interest-only, fixed-rate 13-month loan and efficient construction draw process helped the builder execute quickly to complete the build and claim the profit. Plus, the builder did not have to pay interest on undrawn construction funds, making the loan terms even more beneficial. The builder’s first three loans with Lima One came with a simple, clear process because the builder knew he was preapproved for $2 million in exposure. That allowed the builder to profit from three new builds in a hot market, and then recertify for future builds financed by Lima One.

The subject property was newly built. This SFR ground-up construction loan was funded in July 2022.

Funded By

Lima One Capital

The Nation's Premier Lender for Real Estate Investors

More Deals By Lima One Capital

Lima One Capital
Los Angeles, CA
$3,740,000
Single Family Residence
Lima One Capital
Alexandria, VA
$334,000
Single Family Residence
Lima One Capital
Fort Worth, TX
$2,078,000
Portfolio of Residential Properties, Single Family Residence