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Deal Details
Private Loan Type
Residential Rehab
Approx. Funding Date
02/29/2024
Property Type
Property City
Los Angeles
Property State
CA
Loan Term (months)
12
Lien Type
1st Trust Deed
Payment Type
Interest Only
Property Value
$950,000
Previous Loan Balance
$501,000
Loan-to-Value
68%
Construction Budget
$292,900
Construction Budget Funded
45%
Builder's Contribution to Budget
55%
Completed Value
$1,125,000
Loan-to-Completed Value
58%
Construction Project Scope
Construction Completion
Property Neighborhood
Glassell Park
Location Type
Urban
Property Condition
Poor
Occupancy at Closing
Vacant
Number of Units
1
Building Square Footage
850
Lot Square Footage
4,640
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Excellent
Interest Rate
11%
Origination Points
2%
Deal Summary
Secured Capital Lending, a direct hard money lender, funded a $655,000 1st lien position construction completion loan for a single-family home in the Glassell Park neighborhood of Los Angeles, CA. The property value was estimated at $950,000 so our loan-to-value was 68%. We paid off a previous loan balance of $501,000. We funded 45% of the total $292,900 construction budget. The completed value was estimated at $1,125,000 so our loan-to-completed value was 58%. The Borrower started the project with her own funds but due to inflation and construction costs going up, their budget was increased, and they were not able to finish on their own. They came to us mid-construction during the framing stage, and we were able to quickly underwrite and approve the loan. We ended up paying off her previous lender and gave her the entire completion funds to complete the project. It required us to get out of our comfort zone and do a little more work to make sure there was no hair left on the deal. We eventually got comfortable with the project and got the job done. The subject property was approximately 850 square feet set in a 4,640-square-foot lot. The Borrower had excellent credit. They plan to sell the property as an exit strategy. The interest rate was 11%, and we charged 2% origination points. The loan term was set at 12 months. This SFR construction loan was funded in February 2024.
Funded By
Secured Capital Lending
Direct Private Lender for California Investment Properties
Dealmakers
Sam Chivitchian
CEO/Fund Manager
As the visionary CEO of Secured Capital Lending and Fund Manager of SCL Funding, I bring a wealth of experience and insight to the forefront of real estate financing. Under my leadership, Secured Capital Lending has flourished, becoming a pivotal force in providing innovative private lending solutions tailored for real estate investors and brokers. My strategic approach and commitment to excellence have not only propelled the company's growth but also solidified its reputation as a trusted partner in achieving financial success. With a keen eye on market trends and a passion for empowering clients, I continue to drive Secured Capital Lending towards new heights, ensuring our clients' ventures are both profitable and sustainable.