Equidy provided the hard money loan for a renovation with accessory dwelling unit (ADU) in Carmichael, California, that led to a stunning profit. 

The existing home was completely remodelled with a contemporary new home added adjacent returning a stunning profit of $442,000.

The Challenge

An existing Equidy client with an excellent payment history bought a traditional 1950-built home in a serene street in Carmichael, California, for $405,000.

The location provides easy access to local parks, good schools and charming restaurants offering the ideal balance of suburban tranquility and urban convenience.

But the generous size of the 14,640 square foot lot offered enormous opportunity for development.

It was obvious to our client that a trick was being missed!

He had designs on remodelling the existing home and building a brand new home next to it, tailored for modern living.

He approached Equidy about a hard money loan to help finance the project.

The Result

Equidy provided him with a first deed of trust amounting to a $490,000 loan, based on his protective equity in the property of $260,000 and its After Repair Value (ARV) of $750,000.

The original home was completely refitted with a second bath added.

The showpiece new home boasted sleek skillion roofs fitted with solar panels to reduce energy costs and environmental impact.

It featured high ceilings and wooden windows throughout, flooded by natural light and regulated by mini split systems.

The open plan design included a fully refurbished kitchen with new carpentry and two bathrooms with double vanities.

A fire sprinkler system was added for additional peace of mind.

The rebuild was complemented by a delightful low-maintenance outdoor entertaining space.

The total living space of the two homes rose to 2473 square feet which comprised six bedrooms and four bathrooms.

The development was an outstanding success with the property sold in September 2024 for $847,000.

This proved well beyond its listing price of $799,000 and $97,000 above ARV.

How can we help you?

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