An excellent client, a general contractor, was in escrow to purchase a residential investment property with the potential to add additional rental units to the property. The borrower also wanted to utilize excess equity capacity in a few other investment properties as cash down for the investment.
Fidelis Private Fund provided the borrower a $750,000 1st Trust Deed purchase/construction loan with an initial disbursement of $425,000 and a $325,000 holdback for the additional improvements on the subject property, which included the cross collateral of two other residential investment properties for a combined overall 60% LTV ratio.
The exit strategy is to refinance with a conventional loan once the property is remodeled and the additional units are added.
The Fidelis Private Fund helped the borrower capitalize on a great investment opportunity with a quick close and utilize equity in other investment properties as the cash down payment. At the same time, made it a smooth and hassle-free loan process.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.