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CASE STUDY: $2.67M: Construction Bridge Loan: Philadelphia, PA

 Hey everyone! Our iFC CASE STUDIES give you real-life details about how other investors used our loan products to build their portfolios!  

Highlights: 

Location: Philadelphia, PA 

Loan Amount: $2,666,457

iFC Loan Product: Construction Bridge Loan 

Property Type: (4 Properties) Multifamily

Loan Closing Date:  03/03/22

Total Estimated ARV: $4M

Loan to Value:  Up to 82%

Length of Loan: 12 Months

 

OVERVIEW: 

The borrower of these iFC Bridge Construction Loans is a seasoned investor with 1200 active rentals and 100 new builds a year.  

The investor was in the middle of building four projects in Philadelphia, PA—three quadplexes and a six-unit multifamily building. The client had bought the land with cash and, similar to most large developers, was using working capital (cash) to fund soft costs and to get the project started in order to meet timelines for their investors.  

However, like many developers right now, they were running into issues with construction cost overruns due to supply chain shocks. This was forcing them to redo their construction budgets mid-project to assure they would have enough funds to complete their projects.  

iFC was able to support the developer mid-construction by inspecting the construction work completed to date and using a Construction Bridge Loan to refinance a large sum of the developer’s initial cash spent on the deal.  

This allowed the client to redeploy cash into new investments for future builds and update the current construction budgets to have adequate funds to complete proper buildout.  

Key Loan Benefit to Borrower:   

This Construction Bridge Loan is a great example of iFC’s ability to be creative and flexible in our funding for investors. It is a HUGE win for the developer. It allows them to keep the home manufacturing process going, in turn, supporting investor confidence, cash flow, and ultimately, the bottom line to the investment fund. 

In addition, a major benefit to the borrower is that this transaction took iFC a total of 14 days, inclusive of BPO’s and inspections, to close the loan, allowing the developer to move forward. This could have been a two-month process had the developer gone through the bank.  

Recent Resources

CASE STUDY: $165K Fix & Flip Loan: Philadelphia, PA

The ability of iFC to be flexible in this situation not only gave the investor enough capital to finish the three projects he was involved in but, since he had purchased the majority of his assets in 100% cash, the extra liquidity provided him enough capital to purchase a fourth project!  

The investor saw the value of using debt in a smart way, so much so that he decided to scale his business by using his cash for the 15% of equity needed in deals, and IFC for the remaining 85% in debt. 

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CASE STUDY: $611K Fix & Flip Loan: Lakewood, NJ

 “We wanted to say thank you. We are overwhelmed with working with you – how fast everything moved. We really want to thank you. God bless. And we are going to have many more such experiences with you. It was really fluent and really fast for new construction, so we are really happy with the service. The best was that everything took around 3 weeks from the day we started!”

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