CASE STUDY | BORROWER

 

$2.34 Million Needed for Ground Up Construction

Custom Estate | Build and Sell | Los Angeles, CA

 

 

 

 

 

 

 

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.

 

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.

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Closed Loans

Contact 

 

Testa Capital Group

620 Newport Center Drive

Suite 1100

Newport Beach, CA 92660

t: 888.724.7925

f: 1.888.724.7925

info@testacapitalgroup.com

Licensing

 

Testa Capital Group

Real Estate Brokerage

Licensed by the

California Department

of Real Estate

DRE # 01790365

NMLS # 328319

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