The Brookline Group offers business purpose loans to real estate investors in all counties throughout California as an investment for its own account. Loan-to-value ratios are very conservative but most loans do not require an appraisal. Most loans are equity cash out refinance but some are purchase loans. Will consider raw land if the LTV is under 25%.

Loan Amounts

$30,000 to $1,000,000

Interest Rates

8% to 12.5%

Max Loan-To-Value

55.00%

Max Loan-To-Cost

60.00%

Origination Fees

2% to 5%

Loan Terms

6 months to 60 months

Lien Position

  • 1st
  • 2nd
  • 3rd

Loan Purpose

  • Investment Acquisition
  • Investment Refinance
  • Improve Subject Property
  • Use Equity to Invest in Another Property
  • Invest in a Business
  • Business Working Capital
  • Value Add Project
  • Development Project

Property Occupancy

  • Vacant
  • Tenant Occupied 100%
  • Owner Occupied Commercial
  • Owner Occupied Residential

Property Geographic Area Details

Anywhere in California

Property Types and Loan Types

Collateral Types

  • Residential Property
  • Commercial Property
  • Commercial Property Ground Lease

Property Types

  • 2-4 Units Residential
  • Commercial Condominium
  • Commercial Land
  • Equestrian
  • Gym
  • Industrial
  • Manufactured Home
  • Mixed-Use
  • Mobile Home Park
  • Motel
  • Office
  • Parking Lot
  • Portfolio of Residential Properties
  • RV Park
  • Residential Land
  • Retail
  • Single Family Residence
  • Student Housing

Loan Types

  • Private Money
  • Hard Money
  • Residential Bridge

Specialty Loan Types

  • 2nd Mortgage Equity Cash Out
  • 3rd Mortgage Equity Cash Out
  • Land Development
  • Partner Buyout
  • Foreclosure Bailout
  • Primary Residence Bridge
  • Primary Residence Business Purpose Cash Out

Junior Liens

Junior Lien Loan Amounts

$50,000.00 to $700,000.00

Junior Lien Interest Rates

9% to 12.5%

Junior Lien Loan-to-Value

50.00%

Junior Lien Loan-to-Cost

55.00%

Junior Lien Origination Fees

2.00% to 6.00%

We Fund Junior Position Loans

Often

Junior Lien Types

  • Purchase
  • Refinance
  • Equity Cash Out
Will do all-inclusive trust deeds (wraparound loans)

Land Loan

Land Types Considered

  • Residential Land
  • Multifamily Land
  • Office Land
  • Retail Land
  • Special Purpose Land

Will Consider Land That is NOT Entitled

yes

Existing Land Improvements Required

  • Street Access

Max LTV for Land

25.00%

Max LTC for Land Acquisition

30.00%

Purchase Loan

Max Loan-To-Purchase Price

60.00%

Borrower Must Have Property Under Contract

no

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

no

Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
  • Equity in Subject Property
  • Equity in Another Investment Property
  • Equity in Primary Residence
  • Seller Financing
  • Family

Details and Requirements

Typical Closing Time (Days)

10

Fastest Closing Time (Days)

4

Works With

  • Brokers
  • Borrowers

Payment Structure

  • Interest Only
  • Amortized
  • No Monthly Payments Required

Payment Structure Details

Will consider No Monthly Payments if LTV is very low

Pre Payment Penalty

yes

3 months minimum

Will lend to a foreign national

yes

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

yes

Will Consider Collateralizing Multiple Properties in One Loan

no

Will Consider Equity Joint Venture

no

Borrower Entity Types Considered

  • Individual(s)
  • LLC
  • Limited Partnership
  • Trust
  • Corporation
  • Non-Profit Corporation
  • Self-Directed IRA

Documentation Required

  • Credit Report
  • Loan Application

Personal Guaranty (Recourse) Required

Sometimes

Credit Check Required

yes

Credit Check Description

No minimum credit score but the score will help determine the rate and LTV.

Appraisal Required for Residential Property

Sometimes

Appraisal Required for Commercial Property

Sometimes

Broker Price Opinion (BPO) Accepted for Residential Property

Sometimes

Broker Price Opinion (BPO) Accepted for Commercial Property

Sometimes

Fees

Documents Fee

Escrow Fee

Can act as own escrow if no payoffs are involved, thus saving escrow fee

Title Fee

Fees which are mandatory for all new borrower clients

  • Documents Fee
  • Title Fee

Fees which are charged upfront prior to loan closing

  • Documents Fee

Fees which are paid to a third party company

  • Documents Fee
  • Escrow Fee
  • Title Fee

Michael Klemens dba The Brookline Group makes business purpose mortgage loans from his house in the San Fernando Valley, putting to work his retirement savings and profits he made in 35 years of buying and selling Southern California real estate.

Mike Klemens was featured in a Wall Street Journal article by Kristen Grind in May 2016.

License

CA DRE Broker #00490982, NMLS ID #308670

Company Size (Number of Employees)

2

Established

1989

Associations

  • California Mortage Association - Member

Office Locations

4400 Nogales Drive, Tarzana, California, 91356

Primary Capital Source

  • Own Funds

Alternative Capital Sources

  • Bank Credit Line

Loan Structure for Majority of Loans

  • Own Balance Sheet

Percentage of company’s lending business focused on private mortgage

100%

Percentage of Loans Secured by Commercial Property

5%

Percentage of Loans Secured by Residential Property

95%

Percentage of Residential Property Loans Which are Fix and Flip

47%

Percentage of Residential Property Loans Which are Buy and Hold

53%

Percentage of Residential Property Loans Which are Owner-Occupied

30%

Percentage of Loans Secured by Land

18%

Percentage of Loans Secured by a Business (not real estate)

0%

Percentage of Commercial Property Loans Which are Ground-Up Construction

0%

Percentage of Residential Property Loans Which are Ground-Up Construction

0%

Percentage of Residential Property Loans Which are Long-Term Rental (5+ years)

0%

Total Number of Loans Funded to Date

173

Total Loan Volume Funded to Date

$22,387,000

2017 Number of Loans Funded

14

2017 Loan Volume Funded

$4,525,000

Loan Request

Short Description of your Loan Request or Property Address

This information is about yourself, not the subject property.

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(temp use, storage, billboard, parking, etc.)

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If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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(temp use, storage, billboard, parking, etc.)

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If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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how will the loan be paid off?

acres

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