An experienced developer approached us for a $400,000 2nd position bridge loan in Los Angeles to assist in completing eight townhomes that are presently under construction. The townhomes are at varying stages of completion, ranging from 55% to 70%.
The entire site of 24 townhomes, which currently sits on a single legal parcel, serves as collateral for this private money loan. As each townhome is completed and sold, a separate APN will be assigned.
The borrower will use the proceeds to pay down the 1st position hard money loan held by another lender.
Our $400,000 second-position hard money loan will be second to the existing $1.675 million first-position hard money loan. Therefore, the loan-to-value ratio will be approximately 50%.
The townhomes will be two stories, three bedrooms, two bathrooms, and approximately 1,550 sq. ft. of space. Each unit is estimated to sell for between $575,000 and $670,000.
Crescent Lenders has provided the borrower (who has a great credit history) with three loans over the past five years, and the property is located in a desirable area of Downey, California.
Whether you've found a property for sale in Beverly Hills that you want to fix and flip or need a refinance loan on a light industrial property in Los Angeles, Crescent Lenders has you covered.
Want to know more about our financing options? Find out why we are the best bridge loan lenders in California.
