Deal Details
Private Loan Type
Residential Ground-Up Construction
Approx. Funding Date
05/09/2023
Property Type
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 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.
Dealmakers
Stephen Hale
Broker-Associate
CA DRE Lic. 01997969