Case Study: Breaking Ground and Shattering Norms with a Contractor’s Vision

January 20, 2026.

Summary

In Queens, New York, a seasoned general contractor set out to execute his most ambitious project to date: acquiring a single lot, subdividing it, demolishing the existing structure, and developing two brand-new duplex homes from the ground up. While his construction expertise was extensive, the project faced significant resistance from traditional lenders due to its complexity and the borrower’s lack of prior ground-up experience as an investor. Through a strategic and flexible approach, Simon Rishty, Loan Officer at Express Capital Financing, structured a Fix & Flip loan that closed at nearly 90% Loan-to-Cost—transforming a stalled deal into a successful closing.

Real Stories. Real Challenges. Real Solutions.

Every loan has a story behind the numbers. In this section, The Elite Officer highlights real-world cases where Loan Officers turned complex challenges into successful closings. Each case shows how persistence, creativity, and financial strategy can make the difference between a stalled deal and a successful closing.

The Deal at a Glance

• Property Type: Ground-Up Duplex (Fix & Flip execution)
• Location: Queens, New York
• Loan Amount: $1,358,725
• Interest Rate: 11.99%
• Loan-to-Value (LTV): 60%
• Loan-to-Cost (LTC): 84.5%
• ARLTV: 58%

The Challenge

The deal faced multiple obstacles that placed financing at risk:

• Experience Qualification Gap:Although the borrower had completed multiple construction projects as a general contractor, he had never executed a ground-up deal as the titled investor, disqualifying him under traditional lending standards.
• Complex Investment Structure:The project required subdivision approval, demolition, and new construction—steps many lenders were unwilling to underwrite prior to completion.
• Appraisal Shortfall:Initial valuation came in below the purchase price, threatening leverage and deal feasibility.
• Non-Standard Verification:The borrower’s real construction track record could not be validated through conventional title-based methods.

Without a lender willing to evaluate the full picture, the transaction risked collapsing before construction could begin.

The Solution

Simon Rishty approached the transaction with a holistic strategy focused on capability over checkbox compliance. He worked directly with the project’s architect and local Department of Buildings to fully understand the development plan prior to subdivision. Rather than relying solely on standard appraisal assumptions, the team engaged a local appraiser familiar with similar projects who could accurately assess the site’s true potential. Most importantly, Simon structured the loan by recognizing the borrower’s hands-on construction experience—even when prior projects did not reflect title ownership. By documenting real-world execution rather than formal labels, the deal qualified under a Fix & Flip program despite its ground-up nature.

The Outcome

The loan closed successfully at nearly 90% Loan-to-Cost, providing the borrower with sufficient capital to execute the project as planned. The structure preserved leverage, mitigated valuation risk, and enabled the borrower to move forward confidently with construction.

Takeaway for Loan Officers

• Experience Matters Beyond Title:True execution history can outweigh formal ownership when properly documented.
• Understand the Project, Not Just the File:Engaging architects, city officials, and appraisers early can change outcomes.
• Appraisals Are Strategic Tools:The right appraiser can be critical in complex developments.
• Creativity Unlocks Deals:Flexible thinking often separates closed loans from lost opportunities.