The Deal: New Construction in Cape Coral, FL
Today’s deal comes from Paul Lewis, who closed this hard money new construction loan in Cape Coral, FL. The parcel of land was purchased for $115,000. The total loan amount came to $432,000 and was funded at 85% LTC. Construction costs are budgeted at $393,460. The borrower’s exit strategy is to sell the property with an estimated ARV of $739,000.The borrower is a team that has worked with Paul and ABL on several successful deals before. They specialize in waterfront homes and have been building similar projects across the canals in Cape Coral. The borrower has been involved in new construction for over 10 years and builds upwards of 20 residential properties per year. ABL is able to fund their projects quickly and efficiently, so they continue coming back to us for each new construction. “We love that this team are constantly building, always have cash to buy their lots, and are always coming up with new lots and new builds. It’s hard to keep up with builders like that for a lender, but we’re happy to continue funding these successful projects,” said Paul.
“We love that this team are constantly building, always have cash to buy their lots, and are always coming up with new lots and new builds.”
The finished property will be 3-bedroom, 3-bath measured at 2162 square feet under air with a total 3567 square feet. Property exists next to seawall with direct canal access and will include a private pool. The home will be highlighted by a large master suite with walk-in closet, 10-foot-high tray ceilings, kitchen with custom cabinets and granite countertops, and mid-grade Whirlpool appliances. They have used identical building plans for several other successful construction projects throughout the Cape Coral area, resulting in exquisite homes that are typically sold before completion.
Cape Coral, as well as the rest of Florida, is experiencing astronomical growth in the new residential construction sector. The new build permits in Cape Coral have reached a 14-year high and prices rose with it. Currently, new builds are selling for an average of $163 per square feet, marking a 15% increase since the previous year and resulting in a record high for the city. The average price for homes is $285,000 which is a 21% increase from this time last year. Homes in this area are remaining on market for an average of 20 days, although hotly desired homes are selling as quickly as 5 days from listing. Typically homes here receive about 27% of sale price as their down payment and are given multiple offers, leaving seller’s in a strong position for negotiations.
Paul manages the entire state of Florida, providing expertise on local real estate markets to ensure investors are making informed decisions. He enjoys starting and maintaining strong relationships with builders and investors alike, helping them navigate ABL’s loan process and getting to marvel at their finished projects. This borrower specifically comes back to ABL for each new project due to the reliability and easy process that Paul and the rest of the team provides them. If you’re looking for hard money loans for new construction or fix and flips in Florida, contact Paul today.