Single-Family Construction Loan in Boca Raton, FL

Gelt Financial provided construction financing for a local developer to finish their single family investment property in Boca Raton, FL.

Gelt Financial, a direct CRE lender, funded a $425,000 construction loan for a single family investment property in Boca Raton, FL. We advanced $100,000 at closing and the remaining proceeds will be disbursed in draws as the work is completed. The after-repair value was estimated at $2,.000,000 so our loan-to-value was 21%.  The Borrower approached Gelt Financial because they needed to complete their construction of a single-family investment. Our borrower was a local builder running short on cash to complete the home and we funded the remaining draws. They had excellent credit with over 50 years of development experience. The subject property, approximately 4,019 square feet, was originally bought as a lot in 2017 and started construction in 2022.  The Borrower plans to complete the home and eventually sell as an exit strategy. The interest rate was 12.50% floating. We charged 2% origination points. The loan term was set at 12 months. This single-family construction loan was funded in March 2023.