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Park City, UT
A luxury home builder was looking to build a top-of-the-line home in the vacation paradise of Park City, Utah. He had purchased a lot for $250,000 and was now looking for the financing for a massive six bedroom, six- bathroom home.
By the Numbers:
$2,070,000
Loan Amount
$250,000
Land or Lot Cost
$2,060,000
Construction Budget
$3,550,000
After-Repair Value
The Opportunity
A luxury home builder was looking to build a top-of-the-line home in the vacation paradise of Park City, Utah. He had purchased a lot for $250,000 and was now looking for the financing for a massive six bedroom, six- bathroom home.
Supply-chain delays within the marketplace caused this builder to prioritize a lender who offered a streamlined construction management experience. The borrower and financial partner needed to be lockstep in approving construction budgets and releasing construction draws in an efficient manner.
The Solution
Lima One provided the builder a non-recourse loan that covered 100% of the construction budget and charged no interest on undrawn construction funds. This allowed the builder to start the project immediately at very low cost, and only pay interest as construction was underway.
The loan was offered at 58% LTARV leverage, but in an appreciating home price market, the builder was able to get the property under contract at $700,000 over the appraised value, maximizing profit. It was a winning investment that allows the builder to continue investing in luxury markets like Park City and West Palm Beach, Florida.
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