A returning client needed funds to purchase a dilapidated single-family residence in San Diego that will be remodeled and additional rental units added later. The borrower wanted to use his equity in another property as collateral to eliminate any cash required to close the transaction.
Fidelis Private Fund provided the borrower a $380,000 1st Trust Deed purchase loan. The loan was cross-collateralized with two properties, resulting in a Loan-to-Value (LTV) ratio of approximately 58%.
The exit strategy is a refinance with a construction loan once the permits are received to add additional rental units to the property.
The Fidelis Private Fund helped the borrower by performing quickly and allowing the borrower to tap the equity in another property instead of putting cash down on the property purchase, which resulted in a smooth and hassle-free loan process.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.