Case StudyPrivate Money Construction Loan in Los Angeles
Loan Amount: $3,600,000
Loan-To-Value: 67% Purchase + 100% Construction
Situation & Challenge
A builder entered into contract to acquire this fully approved and permitted property that featured a teardown home. They needed to close quickly with competitive terms on the private money financing.
Multimillion-dollar teardowns aren’t the easiest properties to finance. However, when the project is “shovel ready” and the borrower has a successful track record, things start moving in the right direction.
Solution & Result
First Capital Trust Deeds secured a 67% purchase money loan for what essentially will be the cost of the dirt, just a few blocks from the ocean. In addition to the purchase funding, FCTD provided the borrower with 100% of the construction costs to build the new house.
The loan closed in three weeks and the building got to work on tearing down the old house, cleaning the slate for the new, much larger home to take its place.