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Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
Our clients found a great deal on a home where construction was started but never completed. The permits needed to be renewed and paid, and the existing structure consisted of only the frame, but our clients had experience in construction and have successfully completed deals with our lenders in the past so everyone was very comfortable that the work would be done.
The property was purchased for $176,500, and the cost to complete construction was estimated at $239,500 with an additional $70,000 needed for permit fees. We were able to put together a gross loan amount of $476,000 for these clients, which included fund control accounts for the construction and the permits as well as seven month of interest reserves. In addition, we were able to put a second loan on this property, crossing it with another property our hard money lenders had made a loan on, reducing their cash in requirement to almost zero.
The profit potential on this transaction is great. The property is located in a desirable area and home sales are continuing to improve. Our estimated as complete value on this particular property exceeded $700,000, making this a great opportunity for our clients to finish the project and make a good profit. Many lenders would not make a loan of this nature, but we specialize in rehab and construction completion loans here in California. With the proper structure we can often put together fundings that make sense for both the investors and our clients.
If you have been searching for a construction completion hard money loan, rehab loan or even a ground up construction loan, give us a call today. If the property is located in California and the deal is profitable there is a good chance we can help obtain funding for the project. Call us today at 877 462 3422, or visit our hard money construction completion page on our main site.