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5 New Construction Builds – Heber City, UT

When the local credit union required $600,000 per property to initiate a project, the builder explored the option of bringing in another partner for capital. But after talking to Lima One, he realized he could put down less than half of that amount to start building. This eliminated the necessity for another investor to share back-end profits and allowed him to start multiple builds at once.

By the Numbers:

$12.25 million

Loan Amount

$8.25 million

Construction Budget

92.45%

Loan to Cost Leverage

$21.2 million

After-Repair Value

61.25%

Loan to After-Repair Value Leverage

The Opportunity

A builder planned to build five homes in the same subdivision in Heber City, Utah. He needed to start all builds simultaneously to efficiently run the projects to keep costs down.

Most lenders the builder spoke to wanted to stagger the starts of the builds, which would throw off project timelines and lessen the profit. So the builder looked for a new financing partner and found Lima One.

The Solution

Lima One funded all five builds with five simultaneous loans, even though the builder was a new client. With total loan amount of $12.25 million at 92.75% loan-to-cost leverage, the financing helped the builder start these projects while also allocating funds on other ongoing projects.

The process was so seamless that the builder came back to Lima One to fund another ground-up project a few months later. Lima One’s commitment to being a strong partner is empowering this Utah builder to continue to grow his business.