Success Story
An experienced real estate investor and licensed broker sought to refinance an existing bridge loan approaching maturity on a single-family residence with an accessory dwelling unit (ADU). The borrower had invested significant capital into improvements since acquiring the property and was preparing for future value enhancement via ADU construction. The refinance needed to close quickly, and the property had to be transitioned into an LLC structure prior to funding, with the borrower providing a personal guaranty.
Fidelis Private Fund provided a $438,000 first trust deed bridge loan with an 18-month term. Proceeds were used to refinance the existing debt and establish reserves for future liquidity needs. The loan is secured by a tenant-occupied residential property in South Lake Tahoe, which has undergone $250,000 in recent upgrades and is currently in good condition.
Underwriting was based on an as-is valuation of $675,000, reflecting a conservative 65% loan-to-value ratio. Although the property has strong rental income potential—both as a long-term and short-term vacation rental—the loan was underwritten primarily based on asset value, with future ADU improvements expected to further increase property value.
The borrower plans to construct the ADU under a future loan modification and ultimately refinance the entire property with long-term conventional financing once the improvements are completed and stabilized.
Value Added
Fidelis provided the speed and certainty of execution required for a time-sensitive acquisition. By underwriting the transaction based on strong equity, operational continuity, and a reliable borrower referral, Fidelis enabled a smooth closing and supported a generational business transition. This deal reflects Fidelis Private Fund’s ability to move quickly to meet the needs of entrepreneurial borrowers in niche asset classes.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.