New Construction Loan – Orlando, FL MSA
An investor looking to build single-family rentals on 60 lots in the Orlando, Florida MSA suburb of Poinciana came to Lima One looking for financing. Lima One financed the ground-up construction of the first 12 lots with a single new construction loan.
This $1.8 million blanket loan allowed the investor to immediately take a construction draw to cover work already completed, while providing interest-only financing for all construction over a 13-month term. Because the investor has vast experience and a team to manage construction in house, he benefits from commitment funding, which means he will not have to pay interest on undrawn construction funds.
Lima One’s new construction financing allows the investor to start developing these Orlando-area lots and execute the strategy of getting takeout financing to hold them as rentals. As always, Lima One provides ideal financing solution for both the construction and hold sides of a build-to-rent real estate investment strategy.
New Construction FInancingBy The Numbers
- Loan Purpose: Lot purchase and construction
- 12 property lots
- Loan Amount: $1.8 million
- Appraised After-Construction Value: $3.06 million
- Loan-to-Value Leverage: 62%
- Interest Only
- No interest on undrawn construction funds
- In-house construction draws and servicing