Established Charlotte homebuilder seeking construction loan for a spec build in a high-end neighborhood of Charlotte, NC. As banks have pulled back from the more speculative areas of the real estate market, residential builders have had trouble accessing financing for speculative development. Higher volume builders are finding it difficult to create programmatic relationships with lenders that allow easy and quick access to capital.

Southeast Bridge Capital has a great relationship with the customer and was able to provide 92% of acquisition (80% LTC) by cross-collateralizing the deal with a handful of Borrower’s projects nearing completion (approx. 50% aggregate LTV). Southeast Bridge Capital’s structure allowed for Borrower to bring only $100K cash to close, with the remaining equity “deferred” until the sale of the projects nearing completion.​

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Incremental paydowns will come at agreed upon releases prices as the additional collateral sells. Final loan repayment will come via sale of the subject property. With this structure, Borrower is able to capitalize on the captive equity of projects nearing completion, allowing them to maximize production and take full advantage of the red-hot residential market.​