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Midland City, AL – New Construction

An Alabama spec home builder who creates communities around Dothan, Alabama, in the communities of Cottonwood, Rehobeth, Ashford, and Pinckard, needed financing for the next build in a Midland City development.

By the Numbers:

$172,200

Loan Amount

$196,000

Construction Budget

82%

Blended Loan to Cost Leverage

$246,000

Appraised Value

70%

Loan to After-Repair Value Leverage

$254,900

Sale Price

Lifetime Originations:

Builds

$2.75

Million

The Opportunity

He needed a lender able to finance properties in smaller communities, and able to effectively finance starter homes at lower price points. So he once again turned to Lima One.

The Solution

Lima One financed 82% of the blended costs for the land and construction budget on this 1,500 square foot home. The $172,200 loan offered 70% loan to value leverage on the as-completed appraised value, setting the builder up for a quality profit margin on a quick six-month build.

In the end, the builder sold the home at $254,900 (5% above the appraised value) and continued financing new projects in this community and several others with Lima One. Lima One has now provided the builder $2.75 million in financing for 14 Alabama new construction projects.