Case StudyVacant Lot Loan Above Stone Canyon Reservoir
Loan Amount: $1,350,000
Loan-To-Value: 60% LTV
Situation & Challenge
The developer of this Stone Canyon Reservoir view lot needed to pay off an existing loan from the purchase and wanted, if possible, to use other people’s money on the soft costs before taking out a construction loan.
Loans on vacant lots aren’t always easy. Lenders tend to be very conservative in valuing the property while owners are most optimistic. This was a large, premium lot in Los Angeles that lender and owner, along with appraiser, came to an agreement on regarding value.
Solution & Result
First Capital worked with a San Diego-based fund to secure a 60% LTV bridge loan, which gave the developer a sufficient window to complete the planning and permits along with other pre-development work that goes into building a 10,000+ sq ft home.
Loan funded on terms that worked for both lender and borrower.