We recently closed on a $4.50 million spec purchase with 80% lender financing in the Hollywood Hills. Insignia Mortgage found a hedge fund in New York to provide construction financing with no-income verification for the purchase, which was a teardown with a planned high-end redevelopment. The home and the current owner were in litigation with a neighbor. Further completing the deal, part of the home had been torn down, and the bedroom and kitchen walls had been demolished.
- $3.6 million dollar construction loan
- 12-month term
- 9.99% APR, plus 2.5% points
- Interest Only, interest paid only when money drawn
- No prepayment penalty
- 17 day close of escrow