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$2.34 Million Needed for Ground Up Construction

Custom Estate | Build and Sell | Los Angeles, CA

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Lending Challenge:

 

• Client - borrower was a U.S. LLC with local management and principal residing outside the United States with only an L-1 visa work permit.

 

• Client required $2,340,000 additional cash to complete the custom home ground up construction.

 

• Client had no ground up construction and development experience in the U.S.

 

• The lot value was $900,000 and the finished home value at completion was $3,800,000.

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Testa Capital Group Solution:​

 

• Had client set up a new single purpose U.S. LLC to hold title to the subject property.

 

• Experienced fee developer added as minority member in new LLC in exchange for services and development tract record.

 

• Funded $2,340,000 with new borrowing LLC composed of original LLC as majority member and fee developer as minority member.

 

• Due to successful performance, client had Testa Capital Group complete several additional properties in the portfolio.