Our borrower in Beaumont, California, recently acquired a home for $200,000 cash and needed $75,000 to complete a remodel.
The borrower owns multiple investment properties and also has a good credit score.
The loan-to-value was strong, coming in at under 50%.
The 10% interest rate was adjusted from our current 9.0% average due to the property's location.
Repayment will be made within 12 months, but since the average fix-and-flip takes 6 months, it could come much sooner.
Ultimately, the first-position private money loan was funded based on the borrower’s strong credit and strong equity position.
Private money loans can be advantageous alternative financing for real estate investors, especially those in a competitive market like California.
Whether you need a private loan to purchase a distressed property in Temecula that won’t qualify for a bank loan or have found a great vacation rental property in Palm Springs, check out our California Private Money Lender page.
