Spec Home Construction Financing
In these difficult economic times, we find ourselves with quite a financial dilemma. We are selling homes; however, banks are not lending money for Spec Home Construction.
In order to meet the demands of the market for housing, we are turning to private financing by individuals who are seeking a secured investment, with a return at an amount greater than they are experiencing in the traditional investment world.
Our Spec Home Construction Financing Program is set up as follows;
A) The Borrower is Eastwood Custom Homes, Inc.
B) The Borrower will order, pay for and provide an appraisal for each home.
C) The Borrower will order, pay for and provide a Title Insurance Policy insuring the Lenders First Mortgage position for each home.
D) The Borrower will provide the Title Company and Lender with Waivers and Sworn Statements for each Draw.
E) All Draws will be based on 80% of the work competed.
F) The Borrower will prepay the Lender 24 months of interest on Spec Homes at the first Construction Loan Draw and monthly thereafter as necessary.
G) Prepaid Interest will be prorated to the date of loan payoff.
H) Term will be 24 months for spec homes.
I) The Lender holds the first (and only) secured mortgage position on the land and home.
J) Our current interest rate offering is 6%.
K) The Lender will advance to Borrower 80% of the lesser of the Listing Price or Appraised Value.
L) The Lender is paid in full at the closing of the sale.
Current Financing Needs in our order of priority;
1.Spec Home – 5086 S. Colonial Drive, Traverse City, MI (Lot 169 Heritage Estates)
Market Price $249,900.00
Loan Ratio 80%
1st Mortgage Loan $199,920.00
Interest Prepaid $ 23,990.00
Net to Eastwood $175,930.00
This 2850 square foot home is 100% complete and ready for full funding.
Loan repayment is expected to be on or about 7/1/11
2.Spec Home - 3137 Crimson Ranch Lane, Traverse City, MI (Lot 17 Crimson Ranch)
Market Price $129,900.00
Loan Ratio 80%
1st Mortgage Loan $103,920.00
Interest Prepaid $ 12,470.00
Net to Eastwood $ 91,450.00
This 1208 square foot home is 90% complete and will be completed by 6-12-09.
Loan repayment is expected to be on or about 7/1/11
3.Spec Home – 9796 Patty’s Lane, Traverse City, MI (Lot 2, Bobby’s Place)
Market Price $219,900.00
Loan Ratio 80%
1st Mortgage Loan $175,920.00
Prepaid Interest $ 21,110.00
Net to Eastwood $154,810.00
This 1996 square foot home construction will take 90 days and should start 6-10-09.
Loan repayment is expected to be on or about 7/1/11
The total Mortgage amount for the homes listed above is $479,760.00.
The total Net funds disbursed for the homes listed above are $422,190.00.
The Lender may choose to do all of the loans or any single loan.
INVESTMENT OPPORTUNITIES: