Earlier this year, before COVID-19 lockdowns were enforced, we were able to secure funds and close a Ground-Up loan for a seasoned builder.
The story of this loan dates back to 18 months when we first got approached to fund a 12-Plex Multifamily project. Back then, our real estate legal counsel identified some issues on the title and did not allow us to move forward with the loan. However, due to our extended experience in the industry, we diligently worked together with the borrower’s counsel in order to secure the land, obtain entitlements, building permits, etc.
After 12 months of legal work and obtaining city permits, we finally got notified that were clear to close on February 10th .
Short after we closed this loan (after pouring foundation and started framing), a city ordinance required everyone to be under lockdown due to COVID-19 – bringing unprecedent times with unseen levels of concerns and uncertainty.
The builder not only had the confidence to keep moving on the project but managed to oversee it and make sure it was finished on-time and within budget. Draws requests were promptly inspected and funded, loan monthly payments were made on-time and our fund investors received their monthly payments promptly.
Fund managers know that closing and funding a loan is no time to celebrate - it is when a loan gets paid back. Today, we celebrate the success of this 12-Plex Multifamily project.
The builder finished the apartment project on time, performed lease-up in record times, got two offers, sold the project and our payoff was received last week.
We want to thank the builder who has trusted us beyond his capital needs. As of today, we are proudly working with him on three additional projects and are waiting on those to be ready to close and fund soon.