Private Money Loan for Purchase of Rural Property in LA County

The Brookline Group, a private lender based in Tarzana, funded a $322,500 private mortgage for the purchase of a residential investment property in the Antelope Valley region of Los Angeles County. The purchase price was $430,000 which was way below market value. The seller had a hard time finding a buyer because the property was tenant-occupied and the lot size is 7.92 acres of flat usable land with 200+ trees. A conventional lender will not consider such a unique property, so the buyer needed an all-cash offer. We funded very quickly and did not require an appraisal. We did our own in-house valuation and determined the loan-to-value was very low. The Borrower contributed $107,500 cash at closing and agreed to pay down $35,000 in the 3rd month of the loan term. The total loan term was 3 years. The 3-bedroom 2-bath house on the property is a manufactured home. The tenant plans to operate an agricultural business on the land and pay off our 1st mortgage with business profits. This private money loan was funded in November 2020.