A repeat client negotiated an excellent price to purchase a residential duplex on a large lot with plans to add eight additional dwelling units (ADUs) to the site for a total of 10 units. The purpose of the loan was to acquire the property and later provide additional funds to construct the additional units.
The buyer needed a lender to perform fast and accommodate the borrower later in the loan term when permits were obtained to amend the loan to provide the added value.
Fidelis Private Fund provided the borrower a $610,00,000 short-term 1st Trust Deed purchase loan. The purchase price was $811,000, or 75% of the purchase price.
The exit strategy is to, later on in the term of the loan, amend the note for the ADU’s thereby increasing the property’s value not to exceed 60% LTV.
The Fidelis Private Fund helped the borrower capitalize on a great investment opportunity within a matter of days, to later add value with additional rental units. 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.