All of our CASE STUDIES, like this new construction case study project in Philadelphia, PA, in the loan amount of $1,334,000 showcase the real estate investment loans we have done for our clients. They give you real-life details about how other investors used our loan products to build their portfolios! From fix and flip and fix to rent loans to new construction, multifamily and rental loans, we do them all!
Location: Philadelphia, PA
Loan Amount: $1,334,000
iFC Loan Product: Cash Out Refi/New Construction
Property Type: Single Family Residential (2 units – 1 is rehab, 1 is new construction)
Loan Closing Date: 10/6/23
Construction Budget: $772,000
Loan to cost: 85%
Exit Strategy: Sell
Length of Loan: 18 months
CASE STUDY DETAILS: Philadelphia: New Construction: $1,334,000
iFC’s Chris Tereo met this Philadelphia, PA new construction borrower at a networking event. The borrower was doing a single-family renovation and a single-family new construction as a PUD (planned unit development).
The customer’s bank loan was not fulfilling their needs. When project costs came in higher than expected, due to the current state of the market, the bank was unable to increase their construction budget. The customer needed more time on their loan, along with additional funding, or they were going to have to get an equity investor involved with their project.
HOW WE HELPED: Philadelphia: New Construction: $1,334,000
iFC helped this borrower by using the equity built into the project to do a cash-out refinance and to get a new budget to fund 100% of construction. iFC gave the borrower a construction draw at closing for work completed to date, so the borrower actually walked away with some cash. The borrower also put money into an interest escrow account and got a new budget for 100% of the construction.
This borrower was able to move forward on their project without raising capital from limited partners or equity investors or injecting their own capital into the deal.
“I’m very happy to have closed and officially have a deal with i Fund Cities under my belt.”