Real estate investor/builder was seeking a business purpose construction loan 1st TD on this Rancho Cucamonga permitted and entitled lot that he purchased in Dec. 2019. Funds from our loan were used to payoff an existing lien on the property as well as fund the construction of the approved and permitted project. At completion, the new home will be a 3,748 SF three-story contemporary SFR with 7 total rooms with 4 BR/3.5 BA and 2-car attached garage. The home sits on a large 19,765 lot and will feature an in-ground pool/spa, patio/deck, fireplace and top of the line appliances, cabinetry, windows and doors. The property is situated near HWY 66 and just a few minutes from I-10. Schools, shopping, restaurants, recreation and medical facilities are all located nearby. Funds Control was 100% of the construction budget. Exit strategy from our loan is the sale of the property.
This loan is a 55.00% LTV on the appraised ARV value of $1.138M. Loan structure features 9 months’ guaranteed interest, 3 months’ prepaid interest and yields an 9.5% annualized return.