All Forum Posts by: Adrian Lemus

SFH at West Palm Beach

I found that lender through my mortgage broker and they were giving a good rate. I'm not necessarily looking for out of state, I've been looking for a local lender since then. 

West Palm Beach, FL

Good evening, 

So I just ran into an issue. I bought a vacant lot and had the ball rolling with everything that needed to be done to do a new constrcution, permits approved last week which the company that was financing the build was waiting to start issuing the funds. At last minute, they pulled out and left me stranded and they said that the main reason was because of Covid19. Unfortunately, they are in South Dakota and they don't see the moving parts and how real estate hasn't slowed down. All the big companies keep buying more vacant land and building more, one company is scheduled to build 3500 doors and that's not including the other 4 big companies down here. 

I have been searching for a new lender that will be willing to fund my new construction. Does anyone have any suggestions?  

Hi Nate, I concentrate in WPB but I have been looking to start doing a few in Miami. Let me know what you're looking for

@Kyle J. 

After two days trying to reach the person in charge of my account they finally answered my question and it's exactly as you explained! 

Thank you!!!

It's a new construction loan for 8 months term 

Hi Biggerpockets, I need some clarification on what the lending company is going to really charge or better yet on how to do the Proper Math! 

On the contract it says the following:

The applicable annual rate will be 4.99% for the first month, increasing .5% for each subsequent month, up to a maximum annual rate to the lesser of 7.99% and the maximum amount permitted. 

I have had several people telling me different things. How do I go about on doing the proper math to understand how much interest will be charged? I totally understand the increments of .5% each month but what I don't understand is how the interest gets applied.

The 2 different options that keeps popping up from people that tries to explain this to me is the following:

If I borrow $100,000

Option A:

1st Month: $100,000 x 4.99% = $4,990 interest

2nd Month: $104,990 x 5.49% = $5,763 interest

3rd Month: $110,753 x 5.99% + $6,634 interest

Option B:

1st Month: $100,000 x (4.99% / 8) = $623 Interest

2nd Month: $100,623 x (5.49% / 8) = $690 Interest

3rd Month: $101,313 x  (5.99% / 8) = $758 Interest

@Bradley Kesselman Thank you! Yes it is in WPB

@Eli Schwartz Thank you!