Cross Collateralized Bridge Loan for Triplex Purchase in Placentia, CA

S&L Capital Group, a California-based lending firm, recently provided a $980,000 bridge loan for a repeat client allowing them to acquire a triplex in Placentia, Orange County, CA. The down payment for this loan was obtained from a cash-out refinance S&L Capital Group provided on another rental property. A quick close was important as this one needed to close within 2 weeks, while tapping into the equity from the other property. We advised our client to open Escrow / Title on the cash-out refinance with the same Escrow / Title office as this acquisition. This would limit confusion between the 2 files as we ran them concurrently and in-turn saved days on the closing timeline. The file was submitted to underwriting on 11/18/2022, Docs were out on 11/22/2022 and we funded on 11/30/2022.  Our Borrower was able to add 3 units to their portfolio without having to come in with any additional cash. Everyone even got to enjoy their Thanksgiving in between.

S&L Capital funded 54.59% of the purchase price in 1st lien position, while the Borrower contributed 45.41% with equity in another property. The Borrower had an excellent credit rating. The subject property was in fair condition and tenant-occupied at closing. The Borrower plans to rehab and rent the property, and then eventually refinance as an exit strategy. The loan term was set at 12 months. This purchase bridge loan was funded in November 2022.