The purchase price was $800,000 for both properties.
Fidelis Private Fund provided a $550,000 short term loan or 69% LTV. The borrower plans to remodel and expand the SFR and develop the adjacent vacant lot (separate parcel) with a detached SFR.
The existing SFR has the potential for increased square footage, and there is an existing Accessory Dwelling Unit (ADU) on the property that will be remodeled. The adjacent vacant lot has the potential for accommodating a detached SFR which if developed can be sold separately.
The properties are underutilized with capacity and flexibility, creating added value to the borrower resulting in enhanced security value for the loan.
The Fidelis Private Fund loan helped the borrower purchase two properties in one loan. This allowed the borrower to create significant value with the redevelopment of each property separately. Therefore, creating a substantial profit potential for the borrower. The exit strategy is a sale of the property or a construction loan.
Another transaction where Fidelis Private Fund is helping our client achieve their financial goal.