Cash Out Refinance Bridge Loan for Anaheim Condo HOA in Anaheim, CA

S&L Capital, a California-based lending firm, recently provided a cash-out refinance directly to a Homeowners Association that had to foreclose on one of the units in the building. This was a unique transaction as the HOA not only recently resolved a multiple-year foreclosure/eviction process, but the property was in complete disrepair. This deal was referred over from a NonQm lender in our network. The HOA was structured as a non-profit therefore we structured the deal as a nonrecourse, cash-out refinance and held back the renovation budget in a construction reserve account. The HOA will complete the renovation, bring the unit back to excellent condition, and then sell the unit. Due to the HOA having an extremely low basis in the property, they did not need a large loan amount. Our loan effectively covered previous legal expenses paid as well as the rehab. By thinking outside of the box, the HOA will be able to increase the value of the properties located in the HOA after completing the renovation. This refinance bridge loan was funded in May 2022.