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Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
01/14/2022
Property Type
Property City
Cape Coral
Property State
FL
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Construction Budget
$225,444
Construction Budget Funded
96%
Builder's Contribution to Budget
4%
Property Condition
Brand New Build
Borrower's Plan
Build and Sell
Exit Strategy
Sale
Borrower Credit Rating
Excellent
Interest Rate
10%
Deal Summary
Coastal Equity Group, a direct private lender, funded a $236,000 1st lien position ground-up construction loan for a single-family home in Cape Coral, FL. We funded 96% of the $225,444 construction budget, while the Borrower contributed 4% cash at closing. Our repeat Borrower started working with us in late 2021. This highly experienced investor and builder has created a streamlined strategy by purchasing multiple vacant lots and getting the lots set up for permitting prior to financing. Once the properties are 45-60 days out from permitting, Coastal Equity Group will provide construction financing. We refinanced the land at the current As-Is value plus construction reserves. With this current strategy, we’re able to fund multiple new construction projects at once allowing the Borrower to go from build to sell in less than 6 months. The Borrower had excellent credit. They plan to sell the property as an exit strategy. The interest rate was 10%. The loan term was set at 12 months. This SFR ground-up construction loan was funded in January 2022.
Funded By
Coastal Equity Group
Direct Private Lender for Real Estate Investors in the Southeast