A repeat client needed a loan to acquire a mixed-use investment property located in San Diego County with significant added-value potential. The subject property consisted of 5 parcels totaling 11+ acres with 80 horse stalls and 13 rental homes. The purchase price was $2,610,000. The borrower plans to renovate and improve the property in two phases.
Fidelis Private Fund provided the borrower a $2,200,000 1st Trust Deed purchase loan commitment with an initial disbursement of $1,600,000. Fidelis held back $600,000 for the improvements to be made, which will be disbursed as % of completion basis.
A recent appraisal concluded the “as is” value at $3,040,000 or 53% LTV ratio based on the initial disbursement. The “as completed” appraised value was $4,510,000, resulting in a 49% total LTV ratio.
The exit strategy is to sell off one of the parcels, then refinance the outstanding balance with a conventional lender.
The Fidelis Private Fund helped the borrower capitalize on a great investment opportunity. 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.