Bridge Loan for 22-Unit Multifamily Property in Los Angeles, CA

Funded by Diversified Mortgage Company

5,500,000

Deal Details

Private Loan Type

Refinance

Approx. Funding Date

08/01/2022

Property Type
Multifamily
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 Highlights

Blanket loan using other property as additional collateral
Significant cash out provided to stabilize subject property

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 Company

Our Current Maximum Fixed Interest Rate is 7.75% for 4 years term and 7.5% for 2 years term.

Dealmakers

Loan Agent

Mike Meisenbach

CA DRE Lic. 01049908

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