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Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
04/03/2023
Property Type
Property City
Charlotte
Property State
NC
Loan Term (months)
12
Lien Type
Senior
Payment Type
Interest Only
Purchase Price
$325,000
Loan-to-Purchase Price
82.50%
Borrower's Contribution to Purchase
17.50%
Source of Borrower's Contribution
Cash
Construction Budget
$500,000
Construction Budget Funded
83%
Builder's Contribution to Budget
82.50%
Completed Value
$1,350,000
Loan-to-Completed Value
50%
Construction Project Scope
Vertical
Location Type
Urban
Property Condition
Brand New Build
Borrower's Plan
Build and Sell
Exit Strategy
Sale
Deal Summary
I Fund Cities, an alternative lending platform, funded a $681,000 senior lien position ground-up construction loan for a single-family home in Charlotte, North Carolina. The purchase price was $325,000 and the construction budget was $500,000. The completed value was estimated at $1,350,000 so our loan-to-completed value was 50%. We funded 82.5% of the total project costs while the Borrower contributed 17.5%. iFC’s North and South Carolina Territory Sales Representative, Erik Eichinger, met these new clients at a networking event in Charlotte. The new construction builders were very respected and successful builders in this area, however, their cost of capital was eating into their cash flow. After discussing their options and hearing about their goals, we were able to offer them much better terms than their previous lender. One of the advantages of our loan was that it allowed them to bring in less money down. This meant that they could invest in more projects. The Borrower plans to sell the property upon completion of the construction. The loan term was set at 12 months. This SFR ground-up construction loan was funded in April 2023.
Funded By
i Fund Cities
Great F#*%ing Loans, Built By Investors For Investors
Dealmakers
Erik Eichinger
Loan Officer, Territory Sales Representative (NC/SC)
Said the client: "We can't wait for our partnership to grow with IFC!"