We strive to create mutually beneficial relationships with our borrowers and this deal was a perfect example of the benefits of such relationships. Last month, one of our repeat borrowers came to us to finance the purchase of a single family residence in Brea, CA which required a fast closing and nearly 100% leverage. On the surface, that looks like an easy pass, but in knowing this borrower well it was actually quite the opposite. In a previous deal, we had cross-collateralized his primary residence to achieve our desired LTV. The borrower hoped he could again tap the equity in his home as his liquidity was tied up in other deals. With an accepted offer on a property he couldn’t pass up, we were the first call he made and the only one he needed. SDC Capital Funding was able to provide a $570,000 loan (90% LTV) with a 12-month term and an 8.99% interest rate.
Lightning Execution to 78% Leverage
A borrower brought us a plan to revitalize an iconic mid-century modern home in Brentwood. The plan involved luxury home building, hillside construction and slope stabilization – not our favorite combination of factors. Based on the condition of the property and challenges of the site, the borrower was able to obtain a substantial price reduction conditioned upon a closing within 4 business days. He presented us with a compelling case to do a deal we might otherwise pass on. But there’s a first for everything and this particular property and repeat borrower won us over. We were able to provide a loan of $1.77 Million (78% of cost) for a 6-month term. And we closed only a few days after the buyer and seller agreed on the final price.