A repeat client and experienced real estate investor had an opportunity to purchase a single-family residence in El Cajon, CA as an investment property at below market value. The plan was to add value by converting a garage into a detached ADU (Accessary Dwelling Unit) and hold as a rental property.
The investor wanted a lender that would give the borrower credit for the real equity in the property based on the discounted purchase price. The borrower also offered another residential investment property in addition to the subject property as additional collateral to obtain essentially 100% of the purchase price.
Fidelis Private Fund provided the borrower a $320,000 short-term 1st Trust Deed loan covering a majority of the borrower’s initial purchase price resulting in a 64% combined LTV ratio, supported by a third party appraisal.
The exit strategy is to refinance and hold as a rental property. The cash flow generated from the income property will easily service the debt.
The Fidelis Private Fund helped the borrower drastically reduce the cash down payment by recognizing the real equity in the subject property based on a discounted purchase price, and utilized equity in another investment property owned by the borrower.
At the same time provided Fidelis security, given the market value of the property and the additional cross collateral.
Another transaction where Fidelis Private Fund is helping our client achieve their financial goal.
Deal FPF 10021