Success Story
An experienced real estate investor and an excellent client needed a construction loan to transition a single-family residence into a multi-family property by keeping the house and converting the garage to a rental unit and constructing four units on the rear of the property for a total of 6 rental units.
Fidelis Action
Fidelis Private Fund provided the borrower a $1,265,000 1st Trust Deed refinance loan commitment with an initial disbursement of $560,000 and a $705,000 holdback for construction of improvements. The purchase price was $747,500, with the after-completion value exceeding $2,500,000 or 51% LTV.
The exit strategy is to remodel, construct new units and stabilize the property then refinance with a conventional lender.
Value Added
The Fidelis Private Fund helped the borrower capitalize on a great investment opportunity and provide cash liquidity from real estate equity and facilitate adding value to the property. At the same time, making it a smooth and hassle-free loan process.