Los Angeles, CA
Equity Cash Out01/22/2019
SDC Capital provided a $900K cash-out loan secured by a multi-family property located in Koreatown, Los Angeles. The Borrower needed the cash to invest in another investment property. There were a number of challenges with title which 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 of 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 bridge loan was funded in January 2019.