While most institutional lenders balk at anything involving construction, we are able to creatively assess an entire property portfolio and work to solve problems – even mid-construction.
This construction loan was for a single family home, (investment property), being built with the client’s own money. It was halfway completed when the money ran out, and the owners were stuck. Not only did they have a construction project a big lender wouldn’t touch, they had a halfway-built house just sitting there with contractors and vendors waiting. Even if they could secure a traditional loan, the time it would take to close it would be disastrous.
They had no cash, but plenty of equity in another completed property. We were able to lend them the money they needed to finish the construction using the equity in the second property as security. With our ability to make decisions in-house after looking at the entire picture (and not hampered by the hoops a loan serviced through an institutional lender must jump through), we’re able to lend in challenging situations.