Belmont, CA$1,265,000 Speculative Construction Loan, Fixed Rate at 5% for 18 months.
Rate: fixed at 5%
Term: 18 months
Amortization: Interest only
The borrower needs to secure a construction loan to complete a single-family speculative construction. The borrower is an experienced builder and needs to mitigate the rising interest rate risk. The property is in Belmont, CA.
The borrower started the construction without securing any debts which resulted in additional risks to lenders and title companies.
Chessboard Capital, Inc. focused on the market’s underlying fundamentals which there has been shortage of housing inventory and the property is in an infilled location. Chessboard Capital identified a lender who is comfortable with borrower’s experiences and recognized the strong local job demand with shortage of housing. A title insurance company was also identified to issue applicable title insurance and endorsements to mitigate the fact the construction had been started.
The efforts resulted in an aggressive priced construction loan execution.