New Construction – Stanwood, Michigan

The Opportunity

An experienced Michigan builder looking to scale his construction business planned to build two homes in the Stanwood community of the Canadian Lakes region. One was on a lakeside property and the other was part of a golf course community. The locations, less than an hour north of Grand Rapids, Michigan, combined with the recreation amenities found in the Canadian Lakes made these properties attractive investments.

The builder had traditionally worked with banks but needed a more flexible lending partner that could provide faster closes without requiring income verification or tax returns. He approached Lima One to see what financing options were available for construction on the lots that he owned free and clear.

The Solution

Lima One offered a private-lending approach to financing through two 19-month interest-only construction loans. The loans covered 100% of the $704K construction budget and 87.5% of total costs, as well as 75% of the appraised as-completed value. The builder also will benefit from Lima One’s streamlined and automated draw process to keep the builds moving and his contractors paid.

High-leverage financing from Lima One will enable the builder to complete these desirable homes in an area known for recreational living as he continues to grow his business, with less friction than traditional bank financing provides.