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$2.5 Million Cash Needed to Finish Construction

$6.5 Million Custom Investment Property

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Lending Challenge:

 

• Client - developer ran out of money and was unable to finish the remaining construction to completion.

 

• Client paid cash for construction but was unable to continue paying the general contractor who filed a mechanics lien.

 

• Sub contractors also filed mechanics liens rendering the property uninsurable by title, causing lenders to pass on the loan request.

 

• The custom home was valued at $6,500,000 at completion and had $1.5m in liens plus $1m required by client to complete construction.

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Testa Capital Group Solution:

 

• Had title issue an indemnity mid-construction mechanics lien waiver agreement for client too personally guaranty.

 

• Obtained lien releases from general and sub contractors in exchange for concurrent payments in full through escrow.

 

• Completed a new $2.5m 1st trust deed that paid off all liens through closing and was able to secure required title insurance.

 

• After providing clean and clear title, netted client funds required to complete construction as well as an additional investment need.