Residential homebuilder completing the last six homes in a cul-de-sac in Southern California. Three homes were roughly 70% finished and three lots needed to be started. Small debt fund with financial issues was unwilling to extend the loan and had been slow paying draws. Similar story to what we see with many small highly leveraged debt funds and small banks that have growing non-performing loan issues.

Red Fox was able to provide a $2,150,000 revolving credit facility that provided the funds to complete the first three pre-sold homes, and then allowed for a re-advance of funds for the completion of the last three homes on the street. Given the loan to sell out value, no additional collateral or cash was required from the sponsor.

The primary source of repayment for this transaction is the completion and sale of the residential homes serving as collateral for the loan.