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Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
08/06/2022
Property Type
Property City
Springfield
Property State
OR
Loan Term (months)
12
Lien Type
1st Trust Deed
Payment Type
Interest Only
Purchase Price
$90,000
Loan-to-Purchase Price
95%
Borrower's Contribution to Purchase
5%
Source of Borrower's Contribution
Cash
Construction Budget
$180,000
Construction Budget Funded
100%
Builder's Contribution to Budget
0%
Completed Value
$350,000
Loan-to-Completed Value
75%
Construction Project Scope
Construction Completion
Location Type
Urban
Property Condition
Brand New Build
Occupancy at Closing
Vacant
Building Square Footage
1,444
Borrower's Plan
Build and Sell
Exit Strategy
Sale
Borrower Credit Rating
Fair
Interest Rate
10%
Deal Summary
Blue-inc Capital, a private lender based in Oregon, funded a $265,000 construction loan for a manufactured home in Springfield, OR. The purchase price was $90,000 and the construction budget was $180,000. Blue-inc Capital funded 95% of the purchase price and 100% of the construction budget in 1st lien position. The Borrower contributed 5% cash. The completed value was $350,000 so the loan-to-completed value was 75%. The Borrower purchased a vacant residential lot. The lot was ready to go for building a new home. They estimated it to take about 2-4 months to place the manufactured home and 3-4 months to make a sale. The newly manufactured home offers approximately 1444 square feet, 3 bedrooms, and 2 full bathrooms. The residential building lot was purchased for $90,000, the manufactured home is approximately $110,000. Infrastructure and placements costs are approximately $70,000. Our loan, in the amount of $265,000 was over 95% of the cost, land, and home, due to the completed value having a significant upside. The Borrower had fair credit. They plan to sell the property upon completion. The interest rate was 10% and the loan term was set at 12 months. This residential ground-up construction loan was funded in August 2022.
Funded By
Blue-inc. Capital
Oregon's private lending solution for over 30 years