Two partners, a general contractor and repeat client, and a real estate investor, needed a construction loan to build two residential units in San Diego, CA. The acquisition included one parcel with the lot being split into two separate lots creating added value.
The purchase price was $600,000. The initial loan disbursement is $430,000 with a $508,000 holdback plus cash contributed by the borrower to be disbursed through fund control to build a 2-story SFR with a basement on the right side and a detached 2-story ADU with a basement on the left side.
Total cost of $1,450,000 or 66% LTC. Completed value conservatively will exceed $950,000 per unit or total $1,900,000 or 50% LTV.
Fidelis Private Fund provided the borrower a $938,000 1st Trust Deed purchase/construction loan or 66% LTC and a 50% LTV ratio.
The exit strategy is to sell or refinance the two units once completed.
The Fidelis Private Fund loan helped the borrower allowing time for the lot to be split into two lots creating added value and provided a construction loan much faster than a conventional institutional lender.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.