How a Canadian builder secures a cash-out refinance for new construction

In the dynamic landscape of real estate investment, securing financing for new constructions presents unique challenges, especially for international builders. This was the scenario faced by a seasoned Canadian home builder who ventured into the U.S. market with his ambitious project. Having funded the construction entirely out-of-pocket, our client had just completed his first U.S. construction—a well-designed single-family home valued at $250,000 in New Orleans. With the project completed, he needed to cash out on his investment to fund his subsequent building ventures.

Our client approached Milo with a clear understanding of his needs and a familiarity with the concept of delayed financing—a financial strategy that allows investors to reclaim their cash investment in a property shortly after its purchase, bypassing the typical six-month waiting period required by most lenders. This was exactly what he needed to continue his building ventures without delay.

We opted for a DSCR (Debt Service Coverage Ratio) for new construction loan, a type of financing that bases the loan eligibility on the potential income the property could generate rather than the borrower’s personal income. This was ideal for our client, who did not yet have rental income to show. We secured a 65% LTV (Loan-to-Value) cash flow loan, which provided him with the necessary liquidity while ensuring a manageable debt level.

Our expert team worked closely with the client, guiding him through each step of the process and ensuring he was well-informed and comfortable with the proceedings. Despite the complexities of the scenario, our swift and efficient approach allowed us to close the deal promptly, enabling our client to move forward with his next projects and establishing a strong foundation for his future investments in the U.S. For our Canadian builder, Milo was not just a lender but a partner that enabled him to navigate the complexities of the U.S. real estate market with confidence. This story exemplifies our commitment to providing tailored and timely solutions to our international clients, helping them succeed in their investment endeavors.

Choose Milo—your trusted partner in international real estate financing. For more details, reach out to our team at loans@milo.io.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.