Type of the loan: Bridge Loan
The loan was to provide necessary funding to purchase the property and renovate it into a contemporary-modern home with ocean-view roof deck.
This deal came to Grand Pacific after our client’s all cash offer to purchase the property for $1,305,000 was accepted, and the deadline to close escrow was approaching. The client plans to expand the existing improvement to triple its current living space renovating it into a 2-story, contemporary design home. However, he has limited experience as a real estate developer. Furthermore, the client has limited liquidity, limited net worth; therefore, a loan with high LTC, nearly 80%, was necessary in order to make the project possible.
Grand Pacific was able to step in and provide the funding needed for the purchase along with construction soft cost, hard cost, and payment reserve. Despite the hurdles, Grand Pacific believes in the profitability of the project. The property is located in a desirable location with high demand for high-end new homes while the supply is limited. Even though the client is not an experienced investor, he is an architect and has worked on the designs and permits for similar projects in the neighborhood. With the belief in the success of the project, Grand Pacific was able to deliver and execute before the deadline, satisfying the broker and client’s requests.