Denver, CO

The Opportunity

A Denver, Colorado, builder found a lot with an existing 2,000 square foot home that he believed he could turn into a teardown/rebuild project that would result in significant profit. But he had trouble finding lenders who could adequately leverage the lot purchase price to make the deal work.

He also needed a longer construction loan—19 months—to cover the time needed for the demo and rebuild. After doing his research, he turned to Lima One.

The Solution

Lima One was able to finance the overall project cost of nearly $3 million at 90% loan to cost, including 75% loan to cost on the lot purchase—vital because of the home that already existed on the land. This leverage allowed the builder to proceed with the 19- month project that will result in an ARV of $3.7 million and a profit of more than half a million dollars.

Lima One was able to underwrite the loan to meet these unique needs driven by the builder’s strategy, and finance the deal for $2.68 million at 72% ARV. The sales rep and ops team provided excellent customer service throughout, working through multiple budget reviews and two appraisals to get the deal done. And thanks to Lima One’s borrower underwriting process, the experienced builder was able to work on multiple loans at the same time and scale his business.