Deal Details
Private Loan Type
Purchase
Approx. Funding Date
01/12/2021
Property Type
Property City
Encinitas
Property State
CA
Loan Term (months)
36
Lien Type
1st Trust Deed
Payment Type
Interest Only
Purchase Price
$1,152,800
Loan-to-Purchase Price
70%
Borrower's Contribution to Purchase
30%
Source of Borrower's Contribution
Cash
Term
3 years
Location Type
Suburban
Property Condition
Excellent
Borrower's Plan
Long-Term Rental
Exit Strategy
Refinance
Deal Summary
TaliMar Financial funded an $807,000 bridge loan in 1st lien position secured by a condominium in Encinitas, San Diego County, California. The loan was underwritten to 70% of the current value (purchase price) with a term of 36 months. We did not require an appraisal. We approved and funded the loan within 7 days with minimal Borrower paperwork. The Borrower will refinance our bridge loan with conventional financing. They plan to hold the property as a rental for long-term cash flow. The biggest hurdle in this transaction was the HOA was in litigation with an outside 3rd party. Because of the risk associated with the litigation, most lenders were unwilling to fund the purchase loan. After reviewing the Borrower’s credit strength and with a large down payment, TaliMar Financial approved and closed the loan in 5 business days. The Borrower was referred to us by our mortgage broker community after the conventional lender was unable to get the loan approved. Because the mortgage broker and Borrower weren’t familiar with the hard money loan process, we worked closely with each party to ensure a smooth transaction. One of the biggest initiatives for TaliMar Financial in 2021 is educating real estate agents and mortgage brokers about the hard money lending approval process. Unlike conventional lenders, hard money lenders rely more heavily on the Borrower’s equity in the property vs their credit or cash flow. As long as the Borrower can demonstrate the ability to pay and have a clear path to repayment, hard money can be a great option to purchase or refinance a property. This bridge loan was funded in January 2021.