Success Story
An experienced real estate investor sought financing to add two fully permitted ADUs to an existing duplex. The borrower needed a lender willing to fund construction in a subordinate lien position while leaving the existing first mortgage in place, a structure not readily available through conventional lenders.
Fidelis Private Fund structured a $418,500 second trust deed construction loan to fund the garage conversion and construction of a new detached ADU. The project will expand the property from two units to four and is supported by fully permitted plans and a fixed-price construction contract. Based on the projected as-complete value, the combined first and second trust deed leverage is approximately 56% LTV.
Upon completion and stabilization of all four units, the borrower plans to refinance the existing first and the Fidelis second trust deed into a single permanent loan.
Value Added
Fidelis provided a flexible construction solution that allowed the borrower to preserve the existing first mortgage while funding a fully entitled ADU expansion. The transaction demonstrates Fidelis’ ability to structure subordinate construction financing around strong in-place income, experienced ownership, and a clearly defined permanent refinance strategy.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.