As the owner of a construction company, the borrower felt prepared to take on the challenge of a new construction real estate investment. He drew up plans for a 2-story, 4 bedroom, colonial-style home. He chose hardwood floors and put in lots of windows to create a bright space.
Although the borrower needed an extension and a loan modification, his finished project was a beautiful home that sold quickly. It did sell for below the after repair value, but the borrower had enough of a difference between his investment and his sale price that he still made a significant profit.
