Quick Close New Construction Loan – Chicago, IL
Sometimes deals come with a countdown—especially in the hypercompetitive 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 on its sales pitch.
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. So, they called Lima One Capital looking to keep their scheduled closing on a vacant lot in the Logan Square neighborhood of Chicago, Illinois. Lima One was able to use the appraisal the borrower had in hand to expedite closing on the borrower’s schedule.
New Construction Loan By the Numbers
- Project Type: Ground-Up New Build
- Loan Purpose: Lot Purchase and Construction
- Loan Amount: $620,000
- Construction Budget: $514, 000
- After Repair Value: $875,000
- Loan-to-ARV Leverage: 71%
- Loan Term: 13 months
- Interest Only
- No interest on undrawn construction funds
Great Service Throughout the Life of the Loan
Lima One’s internal underwriting and appraisal team closed this $620,000 new construction loan right on time, letting the borrower start on a build that should result in an after-repair value of $875,000. This interest-only loan offers the borrower in-house construction draws and servicing, and fully protects the broker’s relationship with the borrower client. It’s a win/win for everyone involved, thanks to trustworthy partnership from Lima One Capital.