Vacation Rental Hard Money Bridge Loan for SFR in Carlsbad, California

In October 2020, TaliMar Financial funded an $865,000 1st TD Cash-Out Refinance Hard Money Bridge Loan secured on a single-family home in Carlsbad, CA. The loan term was 36 months with no minimum payments required.

The Borrower approached TaliMar Financial seeking hard money cash-out refinance on their vacation rental. The property has been used as a short term vacation rental for over 12 months and had strong cash flow. The Borrower was an experienced vacation operator and was looking to increase their number of units under management.

The biggest hurdle in this transaction was that the property had an existing 1st and 2nd TD that was a line of credit and which they wanted to keep. We contacted the 2nd TD lien holder and was able to get our bridge loan approved. Once approved, we closed within 5 business days.

Funding cash out vacation rental loans can be challenging without 6 to 12 months of historical cash flows and strong Borrower credit/cash flow. However, because TaliMar Financial is a hard money vacation rental lender, we are more focused on the Loan to Value (LTV) ratio than Borrower credit and property cash flow. In this instance, the Borrower had strong credit/cash flow and was able to demonstrate historical property cash flow, and therefore pricing and loan structure was more aggressive.