Success Story
A repeat client requested a loan to purchase an owner-occupied office building. The borrower secured the property at a significantly below-market price of $1,685,000, which equates to $144 per square foot. The actual market value exceeds $2,000,000, and after the borrower invests in remodeling with their own funds, the value is expected to easily surpass $2.8 million.
The challenge was that the borrower wanted to leverage the equity in several of their free and clear properties as the down payment, effectively purchasing the property with minimal out-of-pocket expense.
Fidelis Private Fund provided a $1,700,000 1st Trust Deed loan on the office building and cross-collateralized two other free and clear investment properties. This loan resulted in a combined Loan-to-Value (LTV) ratio of 47%, calculated conservatively using the purchase price of the subject property.
The client’s exit strategy is to refinance this loan with a conventional lender.
Value Added
The Fidelis Private Fund helped the borrower quickly close on the purchase using little to no cash out of pocket and enabled him to tap his equity in his properties, creating substantial value for the property. 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.