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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
01/19/2023
Property Type
Property City
Lake Tahoe
Property State
CA
Loan Term (months)
48
Lien Type
1st Trust Deed
Payment Type
Amortized
Purchase Price
$1,800,000
Loan-to-Purchase Price
55%
Borrower's Contribution to Purchase
30%
Source of Borrower's Contribution
Cash
Property Neighborhood
Kings Beach
Location Type
Vacation Area
Property Condition
Poor
Occupancy at Closing
Partially Occupied
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Good
Interest Rate
7.75%
Origination Points
2.25%
Deal Summary
Diversified Mortgage Company, one of California’s oldest and lowest-priced private lenders, funded a $1,020,000 bridge loan in 1st lien position for the acquisition of 2 properties in the Kings Beach neighborhood of Lake Tahoe, CA – an 11-unit multifamily property and a 16-unit RV park. The purchase price was $1,800,000. We funded 55% of the purchase, and the Borrower contributed 30% cash at closing. We arranged for another lender to be in 2nd position. The 2nd lender funded $240,000 resulting in a 70% combined loan-to-value. There was negative cash flow after debt service, but the property had potential. It was less than 50% occupied and the seller had no operating statements. The interest rate was fixed at 7.75% with amortized payments. We charged 2% origination points. The Borrower had good credit. The loan term was set at 48 months. This multifamily bridge loan was funded in January 2023.
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