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Deal Details
Private Loan Type
Equity Cash Out
Approx. Funding Date
01/22/2019
Property Type
Property City
Los Angeles
Property State
CA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Property Value
$1,600,000
Previous Loan Balance
$600,000
Loan-to-Value
63%
Property Neighborhood
Koreatown
Number of Units
9
Exit Strategy
Refinance
Interest Rate
8.99%
Origination Points
1%
Deal Summary
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.
Funded By
SDC Capital
Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.