Private Money Construction Loan

Transaction Details

Challenges

• Borrower was NOT bankable and had low FICO score
• Borrower had incurred multiple tax and mechanic’s liens that needed to be paid off so that we could also pay his land loan off (he did NOT own the land outright)
• Property was a “white elephant” and in a rural location, meaning most lenders would not look at this deal

Solution

• 59% LTV / 76% LTC Higher leverage loan to pay off ALL LIENS
• 8.75% I/O Fixed Rate
• 24 Month Term
• NO Prepayment Penalty so we can refinance him once finished
• Draw process in front, NOT REIMBURSEMENT – we gave him money at closing