An experienced real estate investor was looking to utilize the equity in his existing multi-family property to purchase a residential duplex fixer-upper. In lieu of either refinancing his apartment and pulling out cash or selling it to obtain the funds to purchase the duplex, he wanted to use his apartment as additional collateral to finance the purchase of the duplex and rehab the property. The investor had to close escrow in 10 days and he did not have time to sell or refinance his apartment to obtain the cash to purchase the duplex the conventional route.
Fidelis Private Fund was able to move fast and closed a $415,000,000 short term 1st Trust Deed loan on the duplex and cross-collateralized the loan with the apartment to provide the funds to purchase and rehab the duplex or conservatively at a 57% combined loan to value. The apartment alone supports the combined debt service. The exit strategy is to refinance the duplex upon the completion of the rehab with a conventional loan or sell the property.
The Fidelis Private Fund helped the borrower purchase an investment property using existing equity in his other real estate. This way the borrower was able to purchase the property without selling or financing his apartment saving him considerable refinancing costs and having to sell his property.
Another transaction where Fidelis Private Fund is helping our client achieve their financial goal.