Los Angeles Hard Money Loan for Single-Family Residence

The borrower acquired the subject property for $2.4 million in October 2019 and put a down payment of 35% ($840,000) at that time. 

Crescent Lenders estimated the current value to be $2.6 million based on the 2019 acquisition price and the new roof which cost approximately $80,000. 

Additionally, real estate prices have increased since 2019. 

We believe the increase in value being used here was conservative.

The amount of invested by the borrower for the down payment and improvements equates to $900,000, making us believe the borrower is fully committed, thereby reducing our lender risk. 

Based on an estimated value of $2.6 million – the loan-to-value was 66%. 

The price per sq. ft. was $260 which was in line with other similar types of buildings based on recent sales. 

The borrower plans to pay down the principal from the cash-flow from another property they own.

As a worst case scenario, the borrower could sell another property they own to pay off the hard money loan they have with us or they could refinance with a bank.

The funds (cash-out of $225,000) will be used for the build out of the borrower's new restaurant business in Culver City.