A repeat client owner/operator of a successful Auto Towing business was in escrow to purchase a multi-tenant industrial building in Chula Vista, CA, for $1,500,000 as an owner user. The borrower owned the adjacent parcels to the east, so the purchase of the subject property enhanced the value of his business with the assembled parcels.
The borrower was in the process of getting an SBA loan through a conventional bank to purchase the property. However, due to the bank’s delay in funding the loan through the SBA, the seller would not allow for more extensions, which forced the borrower to find private money to fund a bridge loan until the bank could close on the long term permanent SBA loan.
To fund the loan amount requested, Fidelis required additional collateral of a single-family investment property, enhancing the loan’s security.
Fidelis Private Fund participated the loan 50/50 with a repeat lending partner providing the borrower a $1,100,000 1st Trust Deed purchase loan commitment on the subject property and a 2nd trust deed on a single-family investment property for a total combined loan to value ratio of 65%.
The exit strategy is to refinance the loan an SBA or conventional loan.
The Fidelis Private Fund helped the borrower capitalize on a great investment opportunity to further his owner-occupied business. At the same time, making it a smooth and hassle-free loan process.