Ground-Up Construction Loan for 2 Detached Townhomes in Houston, Texas

I Fund Cities, an alternative lending platform, funded a $672,435 senior lien position ground-up construction loan for 2 detached townhomes in Houston, TX. We funded 100% of the $596,100 construction loan. The completed value was $1,030,000 so our loan-to-completed value was 66%.  This new construction Borrower came to us by way of a referral. The Customer was receiving financing from a local broker and some private money. They had received a short-term private money loan to do the predevelopment work on the property. They were looking for funding for the vertical construction of their project of two detached townhomes. They had already completed the first phase of construction and wanted to get reimbursed for the work completed. iFC was able to consider the value-add work done to the property, which included rezoning, along with the soft costs that had already been completed. With this consideration within the loan, the Client was able to pay off the remainder of their private money loan at closing. Then, i Fund Cities moved forward in funding 100% of the vertical construction budget on these properties. We not only provided this Client with an on-time closing but did so with terms consistent with what we had given them on Day One. The Borrower plans to sell the property upon construction completion. The loan term was 12 months. This ground-up construction loan was funded in September 2023.