Our borrower submitted their construction loan request on May 4, 2015 and closed yesterday afternoon May 12, 2015. She is purchasing the property for 395k and putting 367k in to expand the property from just over 2500 sq ft to 4100 sq ft. After having appraisal issues, as it seems that in Dallas there was no one that could turn the appraisal around in less than 17 days, we were able to work a deal with an appraiser for a quicker turn time. With the contract expiring yesterday, time was of the essence here.
Here were the numbers on this loan
ARV based on appraisal $1,060,000
Purchase price $395,000
Construction Escrow $367,000
Origination fee $27,468 (rolled into the loan and paid on the back end)
Loan to After Repair Value 60.18%
Total loan amount (including origination fee) $637,868
Cash from borrower at closing $152,600
Monthly Payment $6,378.68
This represents an expected 170% return on her cash investment in the deal (269k profit / 152.6k cash in the deal)
If you have a loan for us to look at submit your application here or call us at 516-526-8445.
Original 1st floor plans
Proposed 1st floor plans