Our borrower sought to consolidate two private money loans worth $1.2 million and obtain a new cash-out loan of $800,000, leading to a new second-position hard money loan of $2 million with a six-month prepaid interest period.
The collateral for the private money loan comprised three recently constructed residential condos in the Beverly Hills area, with a collective worth of over $5.1 million ($825 per sq. ft.).
The borrower, a seasoned developer, planned to utilize the cash-out funds to finish building a new laundromat project in Los Angeles.
One of our investors in this loan expressed interest in purchasing the property from the current owner and reached an agreement with the borrower.
If the borrower cannot repay the loan when it matures in 18 months or becomes delinquent, the loan will be automatically sold to the co-lender/investor for $5.3 million ($850 per sq. ft.).
The co-lender/investor would then become the new borrower for six months, giving them sufficient time to refinance the loan into permanent financing and thereby pay off the second-position hard money loan.
The borrower had an existing mortgage loan with Wells Fargo, with a balance of $2.23 million and an interest rate of less than 4.0%.
The total combined loan-to-value ratio was 83% based on an estimated valuation of $5.15 million.
Our borrower had excellent credit and received over 15 loans from Crescent Lenders over the past five years.
Whether you need a trust loan for an inherited property in Beverly Hills or a hard money loan coming due in Long Beach and needing to refinance, we would be happy to discuss lending options.
We are your California private money lenders with a track record of success.
