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.
Crescent Lenders has financed hundreds of bridge loans in California over the past decade.
Why do our clients enjoy working with us?
-We have a wide range of knowledge, experience, and unparalleled customer service.
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