Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
08/11/2022
Property Type
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 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.
Dealmakers
Jack Pagliarini
Loan Officer, Territory Sales Representative
Borrower
“We felt very comfortable working with you guys and the communication was always there with quick responses to questions whenever we had them!”