Success Stories
Residential Construction Loan
We all know how challenging it can be to find bank financing these days. Lenders are carefully monitored by state and federal regulators who pay close attention not only to the banks' capital ratios and other important metrics, but also to ensure that there isn't an overweighting to specific product sectors (commercial, industrial, hospitality, multi-family, etc.). One of the areas hit hardest by lenders' reluctance to fund loans is construction, even if the borrower intends to live in the finished home.
Jim Lackey Associates has enjoyed considerable success in recent years by establishing relationships with lenders, both private and institutional, who are willing to provide construction financing. One recent instance was an $800,000 loan we facilitated for a client who is building his new residence in Encinitas. One of the unique and most exciting aspects of this loan is the type of construction: it is being built with "green" concepts of sustainability in mind, meaning the home utilizes a structure and process that is environmentally responsible and resource-efficient throughout its life cycle.
Just one example of this is the use of Insulated Concrete Foam (ICF), which is a technique of pouring concrete into forms made of foam, which yields incredible insulation characteristics. Learn more about this by watching the following slide show and video of the property owner, Steve Reeder, in a recent local television interview: Video
Jim Lackey Associates has enjoyed considerable success in recent years by establishing relationships with lenders, both private and institutional, who are willing to provide construction financing. One recent instance was an $800,000 loan we facilitated for a client who is building his new residence in Encinitas. One of the unique and most exciting aspects of this loan is the type of construction: it is being built with "green" concepts of sustainability in mind, meaning the home utilizes a structure and process that is environmentally responsible and resource-efficient throughout its life cycle.
Just one example of this is the use of Insulated Concrete Foam (ICF), which is a technique of pouring concrete into forms made of foam, which yields incredible insulation characteristics. Learn more about this by watching the following slide show and video of the property owner, Steve Reeder, in a recent local television interview: Video
Purchase and Construction Financing
Jim Lackey Associates has been helping clients obtain financing for a wide variety of needs since 2005. While much of our work focuses on "difficult" loans that can not be financed by institutional lenders, i.e., spec construction loans, cash-out refinances for business purposes, self-employed borrowers, etc., there are frequently instances where we encounter borrowers who can, in fact, obtain bank financing, but aren't sure who to approach. In these instances, we work with institutional lenders we believe can meet the client's needs. One such loan just closed this month; following is the background of the transaction.
A local San Diego real estate agent, Bob Angello from Willis Allen Real Estate, had a listing for a property in Solana Beach that was in escrow with a client who intended to demolish the home and construct a new one as his family's personal residence. The client's current bank was being "difficult" to say the least, and their continual delays were putting the purchase at risk. Furthermore, the client was led to believe that banks weren't doing construction loans, which gave the client further reason to hesitate on the purchase. Bob asked if we could help.
After meeting with the client, we quickly determined that we could arrange financing with a local bank who, in addition to financing the purchase, would also provide construction AND permanent financing through a "One Step Closing."
I am pleased to report that the construction loan has recently funded, demolition of the existing structure will take place within the next few weeks, and the client's new home will soon be under construction!
A local San Diego real estate agent, Bob Angello from Willis Allen Real Estate, had a listing for a property in Solana Beach that was in escrow with a client who intended to demolish the home and construct a new one as his family's personal residence. The client's current bank was being "difficult" to say the least, and their continual delays were putting the purchase at risk. Furthermore, the client was led to believe that banks weren't doing construction loans, which gave the client further reason to hesitate on the purchase. Bob asked if we could help.
After meeting with the client, we quickly determined that we could arrange financing with a local bank who, in addition to financing the purchase, would also provide construction AND permanent financing through a "One Step Closing."
I am pleased to report that the construction loan has recently funded, demolition of the existing structure will take place within the next few weeks, and the client's new home will soon be under construction!
Short Sale
With apologies for the unintended alliteration...we all know how challenging it can be to obtain a bank loan these days, even for borrowers with good credit, good income, and good assets. Imagine trying to get a loan to buy a new home after having just experienced a short sale! Most banks won't even talk to a borrower who has had a short sale within the last two years, sometimes even longer with certain institutions. Buyers in this circumstance are, effectively, pre-empted from buying a new home until at least two years have elapsed since the short sale. Getting a new loan for a client like this would be impossible, right?
Not so fast! I am very pleased to announce the recent closing of an $850,000 purchase loan for clients in precisely these circumstances. Jim Lackey Associates has extensive relationships with a variety of lenders, one of whom was willing to look "under the covers" at the background of the short sale. What they discovered was a borrower who had been adversely impacted by a company-initiated relocation from another part of the country to California, which prompted the need to sell the property quickly and in less-than-normal market time. The remainder of the borrower's profile was favorable: steady income, good liquidity for the down payment, very little additional debt. The result: we were able to help this client by arranging a loan for them.
While much of our work focuses on "difficult" loans that are not financeable by institutional lenders, i.e., spec construction loans, cash-out refinances for business purposes, self-employed borrowers, etc., there are occasionally instances where we encounter borrowers who can, in fact, qualify for conventional financing, but aren't sure who to approach. In these cases, we work with institutional lenders we believe can meet the client's needs. This is a great example of just such a situation.
Not so fast! I am very pleased to announce the recent closing of an $850,000 purchase loan for clients in precisely these circumstances. Jim Lackey Associates has extensive relationships with a variety of lenders, one of whom was willing to look "under the covers" at the background of the short sale. What they discovered was a borrower who had been adversely impacted by a company-initiated relocation from another part of the country to California, which prompted the need to sell the property quickly and in less-than-normal market time. The remainder of the borrower's profile was favorable: steady income, good liquidity for the down payment, very little additional debt. The result: we were able to help this client by arranging a loan for them.
While much of our work focuses on "difficult" loans that are not financeable by institutional lenders, i.e., spec construction loans, cash-out refinances for business purposes, self-employed borrowers, etc., there are occasionally instances where we encounter borrowers who can, in fact, qualify for conventional financing, but aren't sure who to approach. In these cases, we work with institutional lenders we believe can meet the client's needs. This is a great example of just such a situation.
Jim Lackey is a licensed real estate broker
CalDRE # 01457183, NMLS # 277266.
CalDRE # 01457183, NMLS # 277266.