Investor with a 792-credit score develops a high-end, smart-tech home in Rancho Cucamonga, CA.
- Structured at 55% LTV on $1.138M ARV.
- 9.50% annualized lender yield.
- 9 months interest guaranteed, 3 months prepaid.
- Post-construction, the property is listed at $3,188,000.
A savvy real estate investor/builder, boasting an impressive 792 credit score, embarked on a visionary project in Rancho Cucamonga. Having acquired a substantial lot in December 2019 for $199,000, the investor sought a business-purpose construction loan to transform this promising parcel of land into a luxurious dwelling.
The envisioned masterpiece was to be a 3,748 square-foot, three-story contemporary single-family residence, boasting 7 rooms, including 4 bedrooms, 3.5 bathrooms, and a 2-car attached garage. Nestled on a 19,765-square-foot lot, the property plans included an in-ground pool, spa, expansive patio/deck, fireplace, and top-tier appliances, cabinetry, windows, and doors. Located conveniently near HWY 66 and I-10, the property is just minutes away from essential amenities, including schools, shopping, dining, and medical facilities.
The project’s financial blueprint was meticulously crafted, with $625,000 secured in Funds Control, exceeding the $623,100 construction budget. The investor’s robust commitment was evident through a substantial $125,000 deposit into Funds Control, reflecting a significant personal investment in the project’s success.
Our loan offering was strategically structured, providing a 55% LTV on the property’s appraised after-repair value (ARV) of $1.138 million. This arrangement included 9 months of guaranteed interest, yielding an attractive 9.50% annualized return for our investors, with a minimum investment threshold set at $62,590.
The completed estate is nothing short of spectacular, redefining luxury with its ultra-modern design, smart home features, and breathtaking panoramic views. The property, now listed for sale at $3,188,000, is a testament to high-end craftsmanship and innovative construction, featuring dual kitchens, multiple living areas, and a seamless blend of indoor and outdoor living spaces across its expansive decks.
Rancho Cucamonga Ground-Up Construction Success Story
- $625,000 Construction Loan
- 55.00% LTV on After Repair Value
- 9.50% Lender Rate
- Business Purpose Construction Loan
- Funds controlled for construction budget, quick disbursement
The Subject:
- Address: Rancho Cucamonga, CA
- Type: Single Family Residence
- Layout: 4 BR/3.5 BA, Three-Story Contemporary SFR
- Condition: Brand new, custom-built, ultra-modern estate
The Scenario:
- Purchased lot in Dec. 2019 for $199,000
- Large 19,765 sq ft lot, underutilized, prime for development
- Proximity to HWY 66 and I-10, near essential amenities
- The vision to create a luxurious, smart-tech integrated home
The Solution:
- Provided a 55% LTV first trust deed construction loan
- Rapid funding to initiate approved, shovel-ready project
- Enabled construction of high-end 3,748 sq ft living space
- Facilitated seamless project execution with controlled funds
The Numbers:
- Appraised ARV Value: $1.138M
- Loan Amount: $625,000, reflecting over 100% of the construction budget
- Projected Sale Price: $3,188,000
- Innovative design with smart home features, maximizing ROI