Overview: This project was the new construction of two townhomes to be completed in one phase. iFC financed 85% loan to cost of this deal with 100% of hard and soft costs, and 40% of acquisition (the reason the day one leverage is low is because of the renovation ratio: new construction projects have very high renovation ratios, which is the value of the purchase price versus the total construction budget).
In this case, the purchase price was $750K and the construction budget was $1,959,950.
Key Benefit: This loan was attractive to our borrower because a bank would only lend him 70-75% of total project cost compared to our 85%.
IFC Loan Product: Acquisition/Construction Loan
Property Type: Townhomes
Date: Construction beginning Fall, 2021
Loan Amount: $2,197,149
ARV: $1.8 million per unit
Loan to Cost: 85%
Customer Feedback: “Chris at iFC was the one person who was willing to take a chance on us with an aggressive timeline and an aggressive capital stack. When you work with a firm like i Fund Cities and Chris, they can get so flexible on a deal-by-deal structure.”—Mike Stamm, CEO Stamm Development Group