Borrower is a professional husband and wife team made up of an experienced home builder and professional realtor that has funded 6 prior projects with ABL. They have built this style of Colonial several times in the Fairfield area and each time has been a huge success. This particular hard money construction loan was structured to finance a project that consisted of a $325,000 purchase price, $500,000 cost to build, with an approximated ARV of $1,095,000. The loan amount was structured at 80% Loan To Cost. The plans call for this house to be a 4,351 square foot colonial with 5 bedrooms and 4.5 bathrooms on a 1/2 acre lot including an unfinished basement with 9ft ceilings, an open floor plan throughout, high end finishes, moldings, and coffered ceilings. The 3rd floor will also feature a loft-style bedroom and full bath.
The home was completed on time and turned out beautifully. The investor sold the home for nearly $100,000 more than the original expected ARV and paid off loan early with no prepayment penalty, marking another success.