Case StudyMid-Construction Completion Financing
Loan Amount: $1,350,000
Loan-To-Value: 70% After Repaired Value (ARV)
Situation & Challenge
The investor needed additional capital to complete the renovation of this property in Orange County before putting it for sale on the market
Mid-construction financing is usually easier to get approved with a lender than it is with the title company, which underwrites the risk based upon the financial strength (liquidity) of the borrower.
Solution & Result
The loan was approved by the lender within a day and First Capital Trust Deeds received word back from Title that coverage was also approved within 24-hours. It helps when the borrower has experience and overall financial strength to give Title the confidence to greenlight the coverage.
The loan closed within two weeks, providing the builder with the funds needed through rehab reimbursement to complete the project.