Bridge Loan for Luxury SFR Rental Purchase in Dallas, Texas

Lima One Capital, a lender for residential real estate investors, funded a $2,300,000 bridge loan in 1st lien position for the acquisition of a luxury single-family residence in Dallas, TX. The purchase price was $3,550,000. We funded 65% of the purchase, and the Borrower contributed 35% cash at closing. The investor approached a bank, but the bank required a lease in place before originating the loan. The bank also spent too much time addressing its documentation requirements and underwriting concerns, endangering the deal. The client needed alternate financing that could close quickly to ensure he could purchase the property and begin to profit. He chose Lima One for an interest-only Bridge Plus loan that allowed the investor to close the deal before the lease was in place. The asset-based private lending approach allowed for a quick close with streamlined underwriting and documentation compared to what banks require. The subject property consists of 4 bedrooms and 6 bathrooms, was in excellent condition, and vacant at closing. The Borrower plans to secure a tenant and eventually refinance with a bank. This SFR bridge loan was funded in September 2022.