New Construction Loan in Chatham, Massachusetts

The Opportunity

A builder growing his business wanted to build a $3.5 million luxury home in Chatham, Massachusetts, on Cape Cod. He had previously used bank financing for his construction projects but found that his plans to grow his business were slowed by the bank’s long closing times and tedious draw process.

He decided to try a different financing source and came to Lima One Capital for his first private lending new construction loan.

The Solution

Lima One matched the 90% loan to cost leverage the bank offered on a $2.2 million loan and then beat the bank by closing in three weeks so that the build could begin. The builder has a 24-month interest-only term to provide plenty of time to deal with permitting issues and Massachusetts winters, and 100% leverage on the $1.795 million construction budget.

Once the build began, the builder benefitted from Lima One’s streamlined construction draw process, with funds released in as few as 24 hours. Even better, the builder will not have to pay interest on construction funds until they’re drawn. Lima One’s builder-focused process sets the builder up for a successful project and the opportunity for a nearly million-dollar profit.