Our client was looking to consolidate two hard money loans totaling $1,200,000 and to cash-out $800,000.
The combination of the consolidation and the cash-out created a new 2nd position hard money loan for $2 million which included 6 months of prepaid interest.
The private money loan was secured by 3 newer built residential condos in the Beverly Hills area which have a combined value of over $5.1 million ($825 per sq. ft.).
The borrower is a seasoned developer and will use the cash-out funds to complete construction on a new laundromat project in Los Angeles.
One of our investors in this 2nd position hard money loan was interested in acquiring the property from the current owner and has the following agreement in place with the owner/borrower.
If the borrower for any reason cannot pay-off the loan when it comes due in 18 months or if the loan becomes delinquent for any reason, this default will trigger an automatic sale to the co-lender/investor for $5.3 million ($850 sq. ft.).
The co-lender/investor would then become the new borrower -- for a period of 6 months giving them time to refinance into permanent financing (thus paying off this 2nd position hard money loan).
There was an existing mortgage loan with Wells Fargo for a balance of $2.23 million, where the borrower is paying under 4.0% interest.
The total combined loan-to-value is 83% (based on valuation of $5.15 million).
The borrower is a long-time Crescent Lenders client with excellent credit and they have procured over 15 loans in the past 5 years.
Crescent Lenders is a private money lending company that helps with purchases, rehabs and cash-out projects for investment properties in areas such as San Diego, Los Angeles and San Francisco.
Bridge loans are available for all property types up and down the California coast.
We Can Deliver Rapid Financing
Between $200k and $5 million dollars
Nationwide private lender (not a broker, avoid the extra fees)
Funding loans such as purchase, refinance, rehab, probate, 1031 exchanges and cash-out
All types of investment properties considered, residential, commercial and industrial
Crescent Lenders, 2999 Overland Ave, Suite 116, Los Angeles, California, 90064