Cetan Funds recently funded two spec home construction loans in Seaside, Oregon. The investors on these projects have been purchasing lots in a highly desirable new subdivision in the hills on the east side of town. They are building homes to sell upon completion with the help of a local builder.
Prior to finding Cetan Funds, they were financing their projects with a different private lender. They discovered that this lender was charging interest on the full loan commitment from day 1. At Cetan Funds, we only charge interest on the outstanding balance. With spec home construction loans, the funding is disbursed gradually as the work is completed. Therefore, by going with Cetan Funds for their construction financing, these investors are able to save a significant amount of money on their interest expense.
Currently excavation and foundation work has begun on our first two projects, and we will likely be funding another two projects very soon. The market in this area remains very strong and these investors are excited to capitalize on this opportunity with the lower financing costs we can offer them.
Loan 1: $500,000 at 11.0% interest for 9 months
Loan 2: $445,000 at 11.0% interest for 9 months