A returning client requested a construction loan for a project in the Point Loma neighborhood of San Diego involving the construction of four Additional Dwelling Units (ADUs): two units with three bedrooms and two bathrooms each, and two units with one bedroom and one bathroom each. These ADUs will be built on a property where a single-family residence is already entirely renovated.
Once the construction is completed, the property will consist of a total of five rental units, transforming it into a multi-family property.
Fidelis Private Fund facilitated the borrower with a $1,050,000 second trust deed refinance construction loan, while the first trust deed amounted to $897,000. The property was appraised at an after-completion value of $3,230,000, which translates to a conservative combined debt loan-to-value (LTV) ratio of 60%.
The borrower intends to sell the property upon completion as the exit strategy.
The Fidelis Private Fund assisted the borrower in enhancing the value of their existing rental property while concurrently enabling them to retain a low-interest first trust deed loan throughout the construction phase. Moreover, we ensured that the entire process was seamless and hassle-free.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.