News: Financial Digest
Posted: January 14, 2022
WAC closes a $1.1m construction loan
Greenwich, CT Worth Avenue Capital, LLC (WAC) has closed a $1.1 million construction loan for a repeat borrower for the purpose of building a new “spec” house on Stanwich Rd. The loan is secured by a junior mortgage on the Stanwich Rd. property and the construction of the new home should be completed by sometime next spring. The underlying LTV on this loan will be approximately 40% upon the completion of the construction of the new house.
WAC provided financing for this borrower on another spec house in town in 2020. That transaction proved to be a very successful one for all parties involved as the spec house sold for its full asking price upon the completion of the construction.
This same borrower expects to sell this new spec house in Greenwich that WAC is financing for somewhere in the $6,000,000 to $7,000,000 price range upon the completion of the construction. The residential real estate market in Greenwich continues to be very robust with minimal inventory and no shortage of potential wealthy buyers who are seeking to purchase new homes for their families in this tony fashionable town.
Upon the completion of the construction of the new house, the borrower will immediately list the house for sale and expects to quickly sell the house in its listing price range and subsequently pay off WAC’s construction loan in full.
Tags:
Financial Digest
MORE FROM Financial Digest
Financial Digest
Example Story Title FD 5
Boston, MA The fall season always marks the return of IFMA Boston events, and this year is no different. Registration is now open for IFMA Boston’s FMForward Deep Dive 2024. The FMForward Deep Dive 2024 Conference will be held on November 19th at the Babson Executive Conference Center in Wellesley, Mass.
Columns and Thought Leadership
What’s UP with that? - by Kyle Kadish
Investors have multiple tools to defer tax liabilities when selling investment properties. The best known is likely a 1031 exchange - which has been around in some form or fashion for over 100 years. Installment sales have existed as part of the code for more than 75 years. Newer legislation (2017) created Qualified Opportunity Zones (QOZs)
Reverse exchanges and the challenges of a competitive real estate market - by Michele Fitzpatrick
Our current, highly competitive real estate market poses specific challenges for investors who are considering taking advantage of a tax-deferred 1031 exchange. In this market, investors will have no problem selling their current property if priced properly, but they may find it difficult to find a suitable replacement property
Cracking the code: Understanding the pros and cons of Delaware Statutory Trusts for 1031 Exchange real estate investors - by Dwight Kay
In the realm of real estate investing, the 1031 exchange Delaware Statutory Trust can provide savvy real estate investors a unique opportunity to achieve passive management, the potential for regular monthly distributions, and a way to enter one of the most tax efficient real estate investment strategies available today.
Another reason to stay debt free in a 1031 Delaware Statutory Trust exchange - by Dwight Kay
It seems like every day there is another reason showcasing the reason why more and more investors are choosing to stay debt-free when investing in Delaware Statutory Trust (DST) properties in a 1031 exchange.