La Mesa, CA
Single Family Residence
Residential Fix and Flip11/12/2020
TaliMar Financial, a direct lender, fund a $445,900 1st position hard money loan secured by a single-family home in La Mesa, California. The Borrower intends to update the existing home and convert the detached garage into an Accessory Dwelling Unit (ADU). They will then decide to either refinance our hard money loan with conventional financing or sell the property. Our Hard Money Accessory Dwelling Unit loan funded a portion of the purchase and 100% of the construction costs. The construction funds will be disbursed to the Borrower over the course of the renovation. Building an ADU has become a very popular option for people who are buying or currently own residential investment properties. Many cities in California is suffering from massive housing shortages and as a result, they have begun to loosen their requirements on ADU’s. The most difficult part of funding ADU’s is the lack of comparable sales in the market. In many cases, we utilize an income approach on these projects and compare future income to debt service. This approach is very different from the typical comparable sales analysis which relies heavily on price per square foot and property features / conditions.