CASE STUDY: NEW CONSTRUCTION PROJECT IN HOUSTON TX
We’re excited to share a recent success story that highlights our commitment to speed and efficiency in funding ground-up construction projects!
THE DETAILS
Our repeat client recently purchased a 5,000-square-foot lot in Houston for $100k. While the lot wasn’t bought at a discount, our client, a successful local builder, benefits from a lower cost basis to build than most investors that are not builders. We funded 85% of the total project costs, and with the land now secured, our client is moving forward with obtaining permits to build a 2,588-square-foot duplex.
INTERNAL VALUATION
Initially, our third-party valuation on this property came in lower than expected. However, at Tidal Loans, all valuations are reviewed by our experienced loan committee. Given that this property is in a tier 1 market for us, our committee confidently adjusted the value from $300k to $375k—saving our client from needing to bring additional funds to closing.
At Tidal Loans, we know that time is money in real estate development. That’s why we focus on quick, seamless transactions and efficient rehab draw funding. Our 24-48 hour rehab draw funding process ensures our client can keep their project moving without unnecessary delays. This swift turnaround helps keep projects on track, potentially saving thousands in interest and carrying costs.
Ready to accelerate your next construction project? Get in touch with us today to see how we can help you close faster and build better!
BY THE NUMBERS
Loan Type: Ground- Up Construction Property type: Duplex- 2,588 sqft Property Location: Houston, TX Property Description: Single Family Residence Purchase Price of the Property: $100,000 Construction Budget on the Property: $210,000 After Repair Value: $375,000 Amount of the Loan: $262,500 |