First Capital Trust Deeds provided a $1,500,000 hard money construction completion loan to the investor acquiring a project halfway completed from another developer. Over the years, FCTD has funded numerous hard money construction completion loans. Qualifying for financing is usually the easier than obtaining Title Insurance, as we wrote in this blog post in 2016, The Hard Part About Obtaining a Hard Money Construction Loan. Title insurers want to make sure that the owner of the property has the financial strength and liquidity to cover the cost of all work being done on the property, as contractors, sub-contractors, suppliers, laborers, equipment providers, architects, and other professionals could file Mechanic’s Liens during the allowable period to file liens.
Our client had excellent liquidity for the title insurer to approve their insurance request. The lender that funded the loan, which was a large Fix & Flip conduit lender, provided a low-cost structure at 1.50% Origination Points with a 7.99% rate for 12-months.
Construction Completion Hard Money Loan Details
Loan Amount: $1,500,000
Term: 12 Months