Recently Funded - Cottage Construction + Take Out Mortgage

Edited by Admin
Recently Funded - Cottage Construction + Take Out Mortgage
TWT recently wrapped up a complete construction and take out mortgage strategy that was put in place for our clients.  
Scott initiated this process over a year back after a comprehensive conversation with the clients, builder and multiple lenders and determined there was a need for flexible capital to move fast.
-TWT underwrote the file and approved a $1,500,000 construction facility. The approval was based on the "as if" end value.  
-The facility provided unlimited draws and advancements on a "cost to complete" basis.  
-The construction interest was held back in an "interest reserve" so that there were no payments made during the construction process.  
-At completion of the project, roughly 97%,  we provided the long term take out mortgage with institutional capital for 75% of the end value. This was enough capital to cover the construction facility (removing it) and provide the clients with an equity take out, which was part of the original discussion.
What makes this mortgage unique is that normally we use non institutional financing for speculative builds but not as often when building recreational homes.  The clients decided to work with us because of our ability to provided and recommend a combination of alternative and institutional solutions on both the construction and take out.  Ultimately, it was in everyones best interest to use alternative capital for the construction for a faster build process and then took that facility out with institutional bank capital at closing.
For more information on our construction mortgage programs, email
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