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$1,265,000 Speculative Construction Loan, Fixed Rate at 5% for 18 months. – Chessboard Capital

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
LTV: 63%

Transaction Description

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.

Challenges

The borrower started the construction without securing any debts which resulted in additional risks to lenders and title companies.

Solution

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.

CHESSBOARD CAPITAL

With our integrated platform, expertise in real estate and experience in financing, we provide our clients a unique advantage to turn their vision into reality.

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  • Call 650.600.1868
  • Address 1670 S Amphlett Blvd, Suite 214-48
    San Mateo, CA 94402
  • Email info@chessboardcapital.com
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