Private Money Equity Cash-Out Loan for Condominium in La Jolla, California

SDC Capital, a direct private lender based in Burbank, funded a $384,000 1st lien position private money loan secured by a condominium unit in La Jolla, San Diego County, CA. The Borrower needed cash out to pay down some expensive business debt that was coming due. He owned a free-and-clear two-bedroom condo that was leased to a tenant who was considered high risk for Coronavirus complications. They didn’t want anyone entering the unit. We pride ourselves on being able to work through all Borrower scenarios if we have a good asset and a reasonable loan request. Fortunately, we felt we could value the unit through tenant-provided videos and pictures and determined the value to be around $640,000. After careful consideration, we were able to provide the Borrower with a 60% LTV cash-out loan at 8.99% interest rate and 1.50 origination points. This hard money equity cash-out loan was funded in June 2020.