New Construction Loan in Los Angeles, California
A Los Angeles real estate investor needed a New Construction loan for a triplex property on Eagle Rock Road for a tear-down/rebuilt construction project. Lima One Capital had the new construction financing the client needed to execute this Southern California ground-up construction investment with maximum profit.
Lima One was able to provide a $1.75 million interest-only loan. The loan included financing for a $1.2 million construction budget. Getting this new construction financing with no interest on undrawn funds was a major selling point, allowing the investor to manage cash flow while maximizing profit.
One of our Los Angeles-based business development representatives brought in this deal, which was processed and underwritten in house. Lima One Capital’s in-house construction management team provided exceptional service and expertise, ensuring that the construction budget was accurate and appropriate for this Los Angeles neighborhood. And the investor has the security of knowing that Lima One’s in-house servicing team will be there for support and assistance throughout the 19-month term of the loan.
When this project is finished, this professional investor will have an investment with an after-repair value of $2.8 million for a property that was originally worth $750,000. In a hot California real estate market, this will lead to a massive six-figure profit if the project is sold, as well as the flexibility to hold the property and collect rent from three separate units for ongoing income.