Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
12/02/2023
Property Type
Property City
Houston
Property State
TX
Loan Term (months)
12
Lien Type
Senior
Payment Type
Interest Only
Construction Budget
$6,220,275
Construction Budget Funded
95%
Builder's Contribution to Budget
5%
Completed Value
$8,750,000
Loan-to-Completed Value
68%
Construction Project Scope
Construction Completion
Location Type
Urban
Property Condition
Vacant Land
Number of Units
25
Borrower's Plan
Build and Hold
Deal Summary
I Fund Cities, an alternative lending platform, funded a $5,924,734 senior lien position ground-up construction loan for a new home development in Houston, TX. We funded 95% of the $6,220,275 construction budget, while the Borrower contributed 5% cash at closing. The completed value was estimated at $8,750,000 so our loan-to-completed value was 68%. This new construction Borrower came to us as a referral from a local balance sheet lender who did not have the capacity to fund this scale of project all at once. The Borrower had a 49-unit subdivision underway. They had already begun work on the 49 lots, but only had funding in place to build on 24 of them. They still needed funding to build on the additional 25 lots. However, the Borrower was maxed out on their exposure from their local bank. Another alternative lender they spoke with was only able to fund 10 builds at a time. iFC was able to fund all 25 remaining deals at favorable leverage. In addition, we were able to credit the Borrower for already completing some of their budgeted line items. This allowed us to perform a draw at closing, which helped the Borrower maintain their liquidity in good standing for the project. Because we could offer this Borrower such creativity and flexibility in funding, it gave them the ability to execute multiple projects at once, ultimately saving them time and money, and helping them to reach their real estate investment goals more quickly. The loan term was set at 12 months. This ground-up construction loan was funded in December 2023.
Dealmakers
Jack Pagliarini
Loan Officer, Territory Sales Representative
Borrower
“We really liked the way your team operates and gets things done. Thank you Jack and i Fund Cities!”