Ground-Up Construction Loan for 4 Single Family Homes in Chowchilla, California

Funded by Karpe Real Estate Center

$995,000

Deal Details

Private Loan Type

Residential Ground-Up Construction

Approx. Funding Date

05/09/2023

Property Type
Residential Land
Property City

Chowchilla

Property State

CA

Loan Term (months)

24

Lien Type

1st Mortgage

Payment Type

Interest Only

Construction Budget

$915,000

Construction Budget Funded

100%

Completed Value

$1,600,000

Loan-to-Completed Value

62%

Construction Project Scope

Vertical

Location Type

Rural

Property Condition

Vacant Land

Occupancy at Closing

Vacant

Number of Units

4

Borrower's Plan

Build and Sell

Exit Strategy

Sale

Borrower Credit Rating

Excellent

Interest Rate

11%

Deal Highlights

We funded 100% of the construction budget.
Funds control utilized.

Deal Summary

Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $995,000 1st lien position ground-up construction loan for 4 single-family homes in Chowchilla, CA. We funded 100% of the $915,000 construction budget. The completed value was estimated at $1,600,000 so our loan-to-completed value was 62%. The Borrower was a repeat customer that had completed over 30 homes with Karpe Real Estate financing. They had excellent credit. The Borrower took care of all the soft costs using their own funds, and our loan was used for 100% of the hard vertical construction costs, plus the payoff of an existing land lien. They plan on being done with the 4 homes in 6 months and full repayment within a year. The Borrower plans to sell all 4 homes upon completion of the vertical construction. The interest rate was 11%. The loan term was set at  24 months. This ground-up construction loan was funded in May 2023.

Funded By

Karpe Real Estate Center

Private Lending for Central California Real Estate - Bakersfield, Fresno, Central Valley, Sacramento | Est. 1926

Dealmakers

Stephen Hale

Broker-Associate

CA DRE Lic. 01997969