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Deal Details
Private Loan Type
Refinance
Approx. Funding Date
08/01/2022
Property Type
Property City
Los Angeles
Property State
CA
Loan Term (months)
48
Lien Type
1st Trust Deed
Payment Type
Interest Only
Property Value
$16,100,000
Previous Loan Balance
$1,650,000
Loan-to-Value
34%
Rate Type
Fixed
Property Neighborhood
East Hollywood
Location Type
Urban
Property Condition
Good
Occupancy at Closing
Tenant-Occupied
Number of Units
22
Borrower's Plan
Lease Up Vacant Units
Exit Strategy
Refinance
Interest Rate
6.95%
Deal Summary
Diversified Mortgage Company, one of California’s oldest and lowest-priced private lenders, funded a $5,500,000 refinance bridge loan, in first lien position, secured by a 22-unit multifamily property in the East Hollywood neighborhood of Los Angeles. The Borrower had to use private money because the entire property was vacant, with no tenants and no cash flow whatsoever. We typically only lend on income-producing commercial properties. However, we agreed to fund the loan since the borrower pledged additional properties as collateral which made our loan-to-value extremely conservative at just 34%. The previous mortgage balance on the property was $1,650,000. We paid off that loan and provided significant equity cash out. We charged a 6.95% fixed interest rate. The Borrower plans to lease up the vacant units and refinance with a conventional loan within the 48-month loan term. This multifamily bridge loan was funded in August 2022.
Funded By
Diversified Mortgage
Multifamily Bridge Loans only. Interest Rates are 8.5% for 4-year term, 8.25% for 2 years, 7.95% for 1 year.
Dealmakers
Mike Meisenbach
Loan Agent
CA DRE Lic. 01049908