Ground-Up Construction Loan for Single-Family Residence in Dallas, Texas

Deal Details

Private Loan Type

Residential Ground-Up Construction

Approx. Funding Date

03/13/2023

Property Type

Single Family Residence

Property City

Dallas

Property State

Lien Type

Senior

Payment Type

Interest Only

Purchase Price

$225,000

Construction Budget

$506,000

Construction Budget Funded

100%

Builder's Contribution to Budget

Completed Value

$1,124,000

Loan-to-Completed Value

47%

Construction Project Scope

Vertical

Property Neighborhood

Northwest Dallas

Location Type

Urban

Property Condition

Brand New Build

Borrower's Plan

Build and Sell

Exit Strategy

Sale

Deal Highlights

Borrower's lots were shovel-ready but the process with bank was taking too long.

We used Borrower's imputed equity in land to structure loan.

We funded 100% of construction costs.

Borrower walked from closing with cash in pocket.

Deal Summary

I Fund Cities, an alternative lending platform, funded a $529,975 senior lien position ground-up construction loan for a single-family home in the Northwest Dallas neighborhood of Dallas, Texas. The purchase price was $225,000 and the construction budget was $506,000. The completed value was estimated at $1,124,000 so our loan-to-completed value was 47%. Texas-based loan officer Jack Pagliarini saw a current townhome deal that this Client was working on and asked to meet with the project sponsors. The Customer had previously worked with banks. They had three lots that were shovel-ready for construction, but the process to get started with the bank was taking much too long. Since the Borrower had owned the land for over a year, we could use the imputed equity in the land to structure favorable terms for the builder. We funded 100% of the construction on this deal and covered all closing costs. The Borrower walked away from the table with additional cash in their pocket. They plan 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 March 2023.