Recently Funded Ground-Up Construction Loan In Los Angeles, California
Loan Scenario:
American Heritage Lending partnered with a first-time ground-up builder to refinance a vacant Los Angeles parcel and fund the construction of a brand-new two-unit investment property. Our construction loan carried a total facility of $408,211—$200,000 toward the land basis plus $399,753 in construction financing drawn against a detailed scope covering everything from excavation and foundation to framing, roofing, mechanicals, and finishes. Structured at a 76.84% loan-to-cost and a conservative 60.03% loan-to-after-construction-value against a projected $680,000 completed value, the 12-month interest-only facility gives the borrower room to build and execute a clean sale at the finish line. To support a newer sponsor, AHL required a vetted general contractor with a proven track record of completed ground-up projects, protecting both the build and the investment.
Los Angeles remains one of the nation’s most supply-constrained housing markets, where every new unit added to the stock meets deep, persistent demand. Infill construction of small multi-unit properties is exactly the kind of project that pencils in California‘s high-value coastal neighborhoods, rewarding builders who can navigate entitlement and cost with meaningful upside at completion. Builders ready to break ground on their next project can get started with AHL’s construction financing.
Similar Recently Funded Case Studies: Ground-Up Construction Loan in Dallas, TX • Ground-Up Construction Loan in Lenoir City, TN • Ground-Up Construction Loan in Mineral Wells, TX
Key Deal Points
| Address | Los Angeles, CA |
| Loan Type | Ground Up Construction – Refinance |
| Borrower Profile | No Experience |
| Property Type | 2 Units |
| Land Price | $200,000 |
| Construction Budget | $399,753 |
| After Construction Value | $680,000 |
| Loan Amount | $408,211 |
| LTC | 76.84% |
| LTARV | 60.03% |
| Term | 12-Month Interest-Only |
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