Chicago, IL

The Opportunity

Sometimes deals come with a countdown—especially in the hyper-competitive seller’s market of 2021. In a time-sensitive environment, real estate investors need a team they can depend on. Unfortunately, not every lender can deliver when it counts.

On this deal, a borrower and his broker found out just a few weeks before the scheduled closing that another lender was dropping out of a deal. They called Lima One Capital to try to save the deal on a vacant lot in the Logan Square neighborhood of Chicago.

The Solution

Lima One was able to use the appraisal the borrower had in hand to expedite closing on the borrower’s schedule, providing maximum leverage on an interest-only construction loan. The borrower was not required to pay interest on undrawn construction funds on the $620,000 loan—lowering costs during the project and maximizing overall profit. When it was time to request draws, the builder got funds quickly thanks to Lima One’s in-house construction management team.

Lima One’s efficient process helped the builder capitalize on appreciating home prices to maximize profit. After completing an 11-month build, the 6-bedroom, 3.5- bathroom home sold for $1.05M, which was $175K above the appraised value.