The borrower needed a creative bridge lender to help finish the rehab of a mixed-use project in downtown San Diego.
The 1st trust deed lender was uncooperative in modifying the note to advance more funds, given higher construction costs than originally anticipated.
Instead of refinancing the total loan amount and having the borrower incur unnecessary costs refinancing the 1st trust deed, Fidelis was able to tap another income property (multi-family apartment) located downtown San Diego with an abundant amount of equity to provide the cash needed to finish the mixed-use project under construction.
Fidelis Private Fund provided the borrower a $600,00,000 short-term 2nd Trust Deed refinance loan. The subject 2nd trust deed loan was secured behind a $482,000 1st trust deed on a property conservatively worth over $2,500,000 and using the combined debt resulted in a 43% LTV ratio.
The exit strategy is to refinance the mixed-use project and pay off the loan with the net loan proceeds.
The Fidelis Private Fund helped the borrower reduce the financing costs by being creative, refinancing a cash-out loan on another property, and using the cash to finish improvements on the mixed-use project. At the same time, making it a smooth and hassle-free loan process.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.