The borrower needed a quick bridge loan to purchase an industrial warehouse/office building that would be owner-occupied. Their SBA loan with the Bank was approved but could not fund in time to meet the seller’s deadline to purchase the property.
Fidelis Private Fund provided the borrower a $1,550,000 short-term 1st Trust Deed purchase loan, with a $450,000 holdback that was only to be disbursed concurrently with the SBA loan funding. The initial disbursement was $1,100,000, or 60% of the purchase price. The “as is” appraised value was $1,825,000 same as the purchase price.
The reason for the holdback was the SBA loan could not be a cash-out refinance, and the borrower wanted to maximize the low-interest rate debt for the SBA loan, so the Fidelis loan commitment needed to match the SBA loan commitment. However, only $1,100,000 was disbursed with the holdback only funding concurrently with the SBA loan closing.
The exit strategy is to refinance with the approved SBA loan.
The Fidelis Private Fund helped the borrower capitalize on a great investment opportunity within a matter of days. At the same time, making it a smooth and hassle-free loan process.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.