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Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.
Multifamily Bridge Loans only. Interest Rates are 8.5% for 4-year term, 8.25% for 2 years, 7.95% for 1 year.
Los Angeles Private Money Interest Rates
According to the private money loan documents software company, Lightning Docs, the average interest rate for Los Angeles private money loans in the 4th quarter of 2023 was 11.44%. The average loan amount was $532,161. These stats are the average of 547 short-term loans (including bridge, rehab, and ground-up construction) funded for investment properties in the Los Angeles metro area between October 1, 2023 and December 31, 2023 by multiple private lending companies that use Lightning Docs as their preferred software provider to prepare loan documents. Of the 547 total loans in the 3-month period, 377 were secured by properties in L.A. County, 74 in Orange County, 44 in Riverside County, 41 in San Bernardino County, and 11 in Ventura County.
Private Money Loan Transactions in Los Angeles
The Brookline Group, a private money lender based in Tarzana, funded a $100,000 cash-out refinance loan secured by a single-family rental home in the Westchester neighborhood of Los Angeles, CA. The Borrower had an existing 1st mortgage of $200,000 and needed a quick cash-out loan for renovation projects on other investment properties. The value of the home was estimated at $850,000 so the combined loan-to-value is only 35%. Because the LTV is so low, our interest rate was only 8.5% with no junk fees charged. We did not require an appraisal, and we closed in just 7 days. The 1st mortgage is maturing in 9 months, so the Borrower plans to refinance into a long-term rental loan within 6 months. This private money loan was funded in July 2021.
Private Money Loan for Multifamily Value-Add Project in Los Angeles, California
SDC Capital, a direct lending firm in Burbank, funded a $1,589,000 private money loan for the purchase and rehab of a 6-unit multifamily building in Los Angeles. The Borrower, a repeat client, was under contract to buy the property which needs a lot of work, including a soft-story retrofit. The Borrower’s plan is to renovate the entire property and bring rents up to market. They needed a bridge loan that included cash to help fund the renovations. They knew they could count on SDC to quickly deliver fair and simple terms. We inspected the property ourselves to confirm the value and loan-to-value of 72%. Our familiarity with the Borrower and their execution allowed us to confidently underwrite this loan and close fast with very competitive pricing. The interest rate was 7.90%, and we only charged 1 point for the origination fee. The loan term was set at 12 months. This private money loan was funded in February 2021.
Private Money Loan for Purchase of Rural Property in LA County
The Brookline Group, a private lender based in Tarzana, funded a $322,500 private mortgage for the purchase of a residential investment property in the Antelope Valley region of Los Angeles County. The purchase price was $430,000 which was way below market value. The seller had a hard time finding a buyer because the property was tenant-occupied and the lot size is 7.92 acres of flat usable land with 200+ trees. A conventional lender will not consider such a unique property, so the buyer needed an all-cash offer. We funded very quickly and did not require an appraisal. We did our own in-house valuation and determined the loan-to-value was very low. The Borrower contributed $107,500 cash at closing and agreed to pay down $35,000 in the 3rd month of the loan term. The total loan term was 3 years. The 3-bedroom 2-bath house on the property is a manufactured home. The tenant plans to operate an agricultural business on the land and pay off our 1st mortgage with business profits. This private money loan was funded in November 2020.
Private Mortgage Line of Credit for SFR in Pacific Palisades, California
Stonecrest Financial, a direct California private lending firm, funded a $1,000,000 private mortgage line of credit secured by residential property in Pacific Palisades, Los Angeles County. The property was under construction at 65% complete. The developer needed to cash out equity for working capital and to complete the project. He opted to use our unique line of credit program to save on interest payments. The appraised value was $7,900,000 so our 1st mortgage was less than 13% loan-to-value.
The property consists of 7,251 sq ft on a 10,370 sq ft lot with ocean and city views from its upper levels. It has 5 bedrooms, 6.2 bathrooms, a lap pool and spa, large deck area’s on two levels that feature expansive, panoramic views, a wine cellar, movie theater/music room, secure storage (safe) room, 5 car garage, and an elevator that goes from the garage to the 3rd level.
The Borrower plans to pay off our loan upon the sale of the property within the 2-year loan term. This private mortgage loan was funded in October 2020.
Private Money Loan for Vacant Land in Los Angeles County, California
In October 2020, The Brookline Group funded a $250,000 private money loan secured by vacant land in Granada Hills, California. We paid off the previous 1st mortgage and provided some cash out to the Borrower to use for business purposes. The property is located just 12 miles from Brookline’s office, so we visited the property and walk on most of the lot. We determined the value to be approximately $1,000,000 soo our loan-to-value was only 25%. The loan term was set at 12 months with no pre-payment penalty. The Borrower plans to sell the property which will pay off our private mortgage. Situated in the San Fernando Valley in North LA County, the subject property consists of four adjacent parcels totaling approximately 2.8 acres. It’s in a populated residential neighborhood, close to a golf course. It has a lot of potential for future development, either as houses, multifamily or commercial.
Private Money Refinance Loan for Rental Home with ADU in Van Nuys, California
SDC Capital, a direct private lender based in Burbank, funded a $754,000 1st lien position private money loan for a single-family rental home in Van Nuys, Los Angeles County, CA. A mortgage broker came to us to refinance their client’s recently completed rehab project as their existing loan was coming due. The Borrower was denied by a conventional lender as the bank would not give credit for the rental income on the accessory dwelling unit that was recently added to the property. SDC recognized the value added by the ADU and determined the LTV to be 65%. Given our ability to underwrite the property value ourselves, no appraisal was required and we were able to close the loan quickly. Our interest rate was 8.5% plus an origination fee of 50 basis points. This private money loan was funded in October 2019.
Purchase Bridge Loan for 5-Unit Multifamily Property in Bell Gardens, California
SDC Capital, a direct private lender based in Burbank, funded a $596,750 1st lien position bridge loan for the acquisition of a 5-unit multi-family property in Bell Gardens, Los Angeles County, CA. The Borrower, a repeat client, plans to renovate the property, increase rents and refinance our loan with a conventional loan upon completion of the rehab project. The Borrower put up 35% of the total project costs, and we funded the remaining $596,750 loan. The renovations will increase the value and result in a 55% LTV. Our interest rate was 6.99% with a loan term of 12 months and no pre-payment penalties. We also did not require an appraisal. This private money bridge loan was funded in June 2019.
Cash-Out Refinance Loan for Multifamily Property in Los Angeles, California
SDC Capital, a direct private lender based in Burbank, funded a $900K cash-out loan secured by a multi-family property located in the Koreatown neighborhood of Los Angeles, California. The Borrower needed the cash to invest in another investment property. There were a number of challenges with a title that we had to work through. The property has 9 units, and some of them had rents way below market, so the property did not meet traditional financing income requirements. We paid off the previous 1st mortgage of $600,000 and provide $300,000 cash out. We did our own valuation in-house and determined the value to be $1,600,000 so the loan-to-value was around 63%. We charged 8.99% interest and a 1-point origination fee. The Borrower plans to refinance within the 12-month term, but we are prepared to offer an extension if the rents are not stabilized by then. This cash-out refinance bridge loan was funded in January 2019.
Private Money Line of Credit for SFR in Pacific Palisades, California
Stonecrest Financial, a private money lender, funded a $1,500,000 1st lien position bridge loan for the acquisition of a single-family home in Pacific Palisades, CA. This Borrower needed to use equity in one investment property to invest in another real estate project. They owned a home in Pacific Palisades, a very desirable area of Los Angeles County, free and clear of any liens. The property was valued at $2,650,000 so the loan-to-value was just 56%. The subject property is a 1,279 sq ft, one-story, single-family home, has 2 bedrooms, and 2 bathrooms, and sits on a 6,500 sq ft lot. The home was built in 1950 and has been completely renovated throughout, with custom maple cabinetry in the kitchen. Stonecrest is one of the only private mortgage lenders in California offering a line of credit secured by a single property. We funded this loan in November 2017.