Featured LoanAssisted Living Facility - Refinance with Construction Funds
Loan Amount: $2,910,000
Loan-To-Value: 75% LTV
Term: 24 Months
Situation & Challenge
The owner of a San Diego assisted living facility refinanced their SBA loan with a private money loan which included rehab financing to expand the facility.
Closing the loan had the normal challenges that First Capital Trust Deeds were able to overcome. The biggest problems came post-close when issues arose with contractors. Sometimes, FCTD has loans where the owner, contractor, and lender are not in agreement on work being done or, in this case, not being done.
Solution & Result
The fund that provided this loan was very hands-on when it came to reviewing construction work. They worked with the owner to replace the general contractor.
A new general contractor, whom the fund manager had worked with several times before, took over the project and agreed to see it through to completion to the satisfaction of the construction fund manager and the owner. Once the renovation is complete, the owner will refinance with a new SBA loan.