Ground-Up Construction Loan for 5 Spec Homes in Leonard, TX

Funded by i Fund Cities

$1,725,508

Deal Details

Private Loan Type

Residential Ground-Up Construction

Approx. Funding Date

08/11/2022

Property Type
Portfolio of Residential Properties
Property City

Leonard

Property State

TX

Loan Term (months)

18

Lien Type

1st Trust Deed

Purchase Price

$325,000

Loan-to-Purchase Price

83.60%

Borrower's Contribution to Purchase

16.40%

Construction Budget

$1,738,915

Construction Budget Funded

84%

Builder's Contribution to Budget

16.40%

Completed Value

$2,493,915

Loan-to-Completed Value

70%

Location Type

Rural

Property Condition

Vacant Land

Borrower's Plan

Build and Sell

Exit Strategy

Sale

Deal Highlights

Construction of 5 Single Family Homes
Small rural town but close to DFW metro area
Provided higher leverage than local banks offered (83% LTC)
Experienced SFR developers with solid track record

Deal Summary

i Fund Cities, an alternative lending platform built for investors, funded a $1,725,508 residential ground-up construction loan for 5 single-family homes in Leonard, Texas, a small rural town close to the DFW metro area.. The purchase price was $325,000 and the construction budget was $1,738,915. iFC funded 84% of the total project costs in 1st lien position, and the Borrower contributed 16%. The completed value was estimated to be $2,493,915 so the loan-to-completed value was 70%. We provided much higher leverage than local banks offered. 

The Borrowers were experienced SFR developers who have established a strong reputation in their market, with proven success and a solid track record. They were looking to obtain optimal leverage in order to support five new construction projects while closing in an efficient manner. They had worked with banks before but found it more challenging to get “spec” home projects done with them. iFC and Jack Pagliarini, our totally on-it new Sales Rep in Dallas were quick to find a solution that met their needs, so we were able to get the process moving right away!

The key benefit to the borrower was that the developer was not only able to feel comfortable with the terms when the deal started, but they could also feel confident throughout the entire process that i Fund Cities would get their deal closed quickly. The loan term was set at 18 months, and the Borrowers planned to sell upon completion. This residential ground-up construction loan was funded in August 2022.

Funded By

i Fund Cities

Great F#*%ing Loans, Built By Investors For Investors

Dealmakers

Jack Pagliarini

Loan Officer, Territory Sales Representative