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Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
04/14/2022
Property Type
Property City
Paso Robles
Property State
CA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Construction Budget
$600,000
Construction Budget Funded
95%
Builder's Contribution to Budget
5%
Completed Value
$1,000,000
Loan-to-Completed Value
60%
Construction Project Scope
Vertical
Location Type
Suburban
Property Condition
Vacant Land
Occupancy at Closing
Vacant
Number of Units
1
Borrower's Plan
Build and Sell
Exit Strategy
Sale
Borrower Credit Rating
Excellent
Interest Rate
9.10%
Origination Points
4%
Broker Commission
$24,000
Deal Summary
Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $600,000 1st lien position ground-up construction loan for a single-family residence in Paso Robles, CA. We funded 95% of the $600,000 construction budget, while the Borrower contributed 5% at closing. The completed value was estimated to be $1,000,000 so our loan-to-value was 60%. The Borrower had excellent credit and was an experienced home builder in California. They purchased several finished lots in a subdivision and looked to Karpe for vertical construction funding. The Borrower had 100% of the hard costs funded and they completed the home within the 12-month loan term, selling and moving on to the next project. We charged 4% origination points and the broker earned a $24,000 commission. The interest rate was 9.10%. The loan term was set at 12 months. This SFR ground-up construction loan was funded in April 2022.
Funded By
Karpe Real Estate Center
Private Lending for Central California Real Estate - Bakersfield, Fresno, Central Valley, Sacramento | Est. 1926