Los Angeles, CA

$540,000

2-4 Units Residential

Purchase

05/13/2021
Transaction by
S&L Capital Group
In May 2021, S&L Capital Group funded a $540K bridge loan for the acquisition of a 3-unit residential investment property in the Greater Los Angeles area. The property had substantial deferred maintenance with room to raise rents to market. The property was fully occupied with tenants that made timely payments throughout Covid. At face value, this deal seemed straightforward. It turned out that the tenants have been in place for nearly 12 years with the last rent increase occurring 10 years ago. The subject property was in a Rent Control making a quick re-working of the tenants unlikely. We put together a 3-year bridge loan for our borrower. This would allow him to work on relocating his tenants over the next 18 months before starting to renovate each unit. The 3-year term gave him the flexibility on not needing to worry about a quickly ballooning note.