LFB was approached by a repeat broker who was seeking financing for his client to develop residential land in Covington, GA, just southeast of Atlanta. The sponsor, who is also a repeat borrower, purchased the land all cash and was requesting financing to develop 118 single family lots, and complete vertical construction on the first 40 homes.

LFB provided the sponsor with an 85% LTC, 65% LTV loan to develop all 118 lots, and build out the first 40 homes of the project. After considering the acquisition price and cash spent to date, LFB was able to finance 100% of the remaining construction costs for the first phase of the project. LFB will also provide additional financing to complete the remaining project on a rolling, phased basis. The project will offer four different floor plans ranging from 1700-1900 SF and the average sales price will be about $340K per home. The excellent liquidity and experience of the sponsor, along with the affordable price point of the homes, made this a very attractive deal to finance. LFB will continue to work with reputable brokers and experienced sponsors to provide high-leverage construction financing on single and multi-family projects nationwide.