The borrower purchased a single-family residential property in Ontario, San Bernardino for $575,000.
The buyer only put down 20%, so due to the high loan-to-value, we requested and received additional cross-collateral from a property in Glendale with approximately $500,000 in equity.
Between both properties, there was $600,000 in equity, greater than the bridge loan amount of $460,000.
The borrower has an excellent credit score of over 800 and expects to refinance and pay off this loan with a traditional mortgage in about 3 to 6 months (this was a 12-month private money loan).
If you're discouraged by the fact that millions of Californians cannot qualify for traditional bank loans, don't let that stop you from purchasing your ideal real estate investment property.
Private money loans offer an excellent alternative source of financing that allows you to employ sophisticated real estate tactics such as fix and flips, The BRRRR Method, or buy and hold.
Check out our private money loans California page to learn how to start today.
