A large cash down payment (purchase price was $1.2ml) and a modest amount of leverage were the perfect combination to close on this partially completed eight cottage development, with 7 additional lots. As a more traditional lender was dropping the ball (unfinished construction was a problem) and the purchase contract was expiring soon, the realtor involved in the transaction knew he needed to call Seattle Funding Group. Our borrower is a successful Bellingham general contractor and he wanted to tie up this bank owned property at a competitive price, but he had to close and extensions weren’t an option. SFG quickly assembled a team of various experts to assist us in analyzing the transaction. Once we felt construction quality was reasonable for the property type and that value was strong, we drafted loan documents. From deal introduction to documents, the timeline was under 7 days. With a Loan to Value (LTV) of under 32% and a borrower with plenty of reserves, this transaction is another safe loan for the SFG portfolio. The borrower stands to make a substantial profit upon completion, undoubtedly a win-win transaction for all.
SFG would like to thank David Moody of Fairhaven Realty for making the key introductions and keeping all parties focused on the closing. SFG would also like to thank Troy Muljat of The Muljat Group for their assistance in confirming local market conditions and value.
