The Deal: New Construction in Brick, NJ
I’ve been impressed with this borrower since her first deal with ABL. Young women aren’t common in new construction, and she is an extremely knowledgeable licensed & insured builder that creates beautiful homes. Couldn’t ask for more in a borrower.
Today’s deal comes from Susan Botros, who closed this hard money new construction loan in Brick, New Jersey. The parcel of land was purchased for $250,000 with a construction budget of $700,000 and a total loan funded at nearly 83% LTC. The borrower is a professional realtor with building experience and a repeat borrower with ABL.
The borrower purchased the property independently back in 2016 after Hurricane Sandy hit NJ. Construction has already begun, and everything has been completed up to the framing stage. The home has been pre-sold and is expected to be completed by the end of June with the homeowner taking over in September. Borrower already put $123,000 into the project and will be reimbursed upon closing the deal.
The proposed build is a high-end 4-bedroom, 3.5-bathroom measured at approximately 2600 square feet. Property will be four-story high and located alongside the water, including direct access to a 100-foot boat dock. The house exterior will be a mixture of glass and aluminum, including a glass balcony with plank siding. Home highlights will include a gorgeous kitchen featuring Hogan-pull cabinets, quartz countertops, and high-grade stainless-steel appliances. The interior will also feature an elevator to further add both luxury and convenience to the property.
Brick NJ is one of the many suburbs of New Jersey that benefited from the mini exodus occurring in New York City. As of February 2021, the average home price in the area reached $331,000 which is a 27% increase from the year before. Even more impressive is the fact that homes are remaining on market for an average of only 19 days, which is an astounding 78% less time than the previous year. 49 homes sold in Brick for the month of February, which is a 32% increase from the same month in 2020. This hot market is benefiting the seller in every transaction, meaning savvy investors can take advantage of the opportunity as long as they can find the right property with so much active competition. This is where new construction investors have an advantage over fix and flip- they can create their own inventory rather than trying to stay ahead of their competition. By designing a house to meet the market needs and sourcing materials directly to reduce costs, residential new construction in Brick NJ is currently a great source of investing opportunities.
“I’m hoping to work with other women investors, whether its new construction or otherwise,” said Susan. “This borrower already paid off her first loan and pre-sold this new project, so she is crushing the game right now.” Susan is the Vice President of Sales and specializes in the New Jersey real estate markets. Her and the rest of the ABL team are always ready to talk to borrowers and help finance their next investment opportunity. If you want to be approved for your hard money loan, contact us today.