Featured LoanMid-Construction Second Mortgage Takeout Financing
Loan Amount: $800,000
Loan-To-Value: 40% Combined Loan-To-Value (CLTV)
Situation & Challenge
A home builder in Northern California, with several ground-up projects in progress, wanted access to an additional $800,000 to finish this project, which was a few months from completion.
Mid-construction second mortgages aren’t something a person can find doing a Google search. You, or your private money funding source (FCTD) “need to know a guy”, like a local trust deed investor, who would fund a loan that regular hard money and private money funds wouldn’t do since their primary focus is first position bridge loans.
Solution & Result
At FCTD, we work with several trust deed investors that like to fund projects near where they live. Investors like to meet the borrower at the property to go over the remaining work that needs to be done and confirm the estimated timeline.
In this situation, the trust deed investor lived a few miles away and was familiar with the developments the builder had recently completed. The second mortgage funded in less than 10 days and provided the builder with additional capital to complete the project.