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.