Situation:

Asset Based Lending recently funded a hard money cash out new construction loan in Newark NJ for a repeat borrower with extensive real estate investing experience. The parcel of land has been owned since 2018 and is worth $130,000. The construction budget is $300,000 and the total loan was funded at nearly 72% LTC. This build will be a two-unit multi-family property with both units being 3-bedroom, 2-bathroom measured at a combined 3900 square feet. After construction is complete, the investor plans to refinance the property using ABL’s rental loan financing to keep the property as an income producing asset. Property will include a two-car garage. Once all permits are complete, construction is expected to finish in approximately four months.