Pacific Private Money recently funded a $575,000, 48% LTV on a Cash-Out Refinance to build in Occidental.The borrower is an LLC whose members include a licensed general contractor with multiple development projects spanning a 40-year career, along with a 25-year real estate broker with experience in commercial and residential real estate development projects. The LLC also has $370,000 in cash.The subject property is part of a fully-approved subdivision containing 7 single family homes, 4 condominium units and a mixed use residential unity. 3 of the lots have been sold, with 1 containing a newly built home.
The subject collateral is 4 SFR lots, 4 condo lots and 1 mixed-use approved lot. All lots have approved plans and are ready to build. The subject collateral is located in Occidental and represents the only approved lots in town.
The use of funds is to payoff an existing 1st of $160,000 and to provide funds to build a model home on Lot 1.
The exit strategy is to sell the model home and existing lots.
Due to the nature of the transaction and the need for speed, conventional financing was not available.
Pacific Private Money sourced private money and was able to fund this Cash-out to build.