Orange County Private Money Lenders for Real Estate Investors
Here is a list of private money lenders for real estate in OC - Irvine, Anaheim, Costa Mesa, Newport Beach, Santa Ana, Laguna Beach, Dana Point, San Clemente, Aliso Viejo and other areas. Use a private mortgage to get fast funding for an Orange County investment property purchase, refinance or equity cash out. Our directory lists private money companies (not individual investors) offering short-term loans that typically range from 6 to 36 months.
The Brookline Group, a direct private money lender, provided a $500,000 2nd mortgage secured by a residential property in Dana Point, Orange County, CA. The property is a 7,200 square foot home that was under construction. The project was 3 weeks away from completion, and the developer needed some additional funds for the finishing touches. The balance of the 1st mortgage was $4,544,000. Brookline provided the cash out loan in very short period of time, and we did not require an appraisal. We estimated the home to be worth around $10,000,000 upon completion, so the combined loan-to-value was around 50%. The property is steps away from the Pacific Ocean in a very upscale neighborhoods surrounded by luxury homes. This private money cash out loan was funded in May 2020.
Private Money 2nd Mortgage for Huntington Beach Multifamily Property
THE SCENARIO: Borrower was seeking a business purpose 2nd TD on multi-family property in Huntington Beach, Orange County, CA. They were restructuring the 1st TD at a low rate with a commercial bank and paying off an existing 2nd TD where the Note was coming due. The subject property is a well maintained 12-unit multifamily property sitting 2 blocks from the beach. The unit mix featured 1 – 4BR/3BA unit, 6 – 2BR/1BA units and 5 - 1BR/1BA units for a grand total of 45 total rooms, 21 bedrooms and 14 baths. THE LOAN: Appraised Value was $5.2M, 2nd TD Loan Amount of $512,000, the combined LTV was 59.85%. The interest rate was 10.50% Interest Only, 5-year loan term, 6 months Guaranteed Interest, months prepaid interest. MORTGAGE VINTAGE VALUE-ADD: Due to LTV constraints the commercial bank couldn't payoff the full combined balance of the 1st & 2nd mortgages. We quickly stepped in and paid off the remaining balance while adhering to the strict underwriting guidelines of the commercial lender holding the 1st trust deed.
Private Money Loan for Brea House Purchase Using Equity in Primary Residence
At SDC, we strive to create mutually beneficial relationships with our borrowers and this deal was a perfect example of the benefits of such relationships. Last month, one of our repeat borrowers came to us to finance the purchase of a single family residence in Brea, Orange County, which required a fast closing and nearly 100% leverage. On the surface, that looks like an easy pass, but in knowing this borrower well it was actually quite the opposite. In a previous deal, we had cross-collateralized his primary residence to achieve our desired LTV. The borrower hoped he could again tap the equity in his home as his liquidity was tied up in other deals. With an accepted offer on a property he couldn’t pass up, we were the first call he made and the only one he needed. SDC Capital was able to provide a $570,000 loan (90% LTV) with a 12-month term and an 8.99% interest rate. This transaction was funded in October 2016.