Private Money Loan for Short-Term Rental in Palm Desert, California

Deal Details

Private Loan Type

Equity Cash Out

Approx. Funding Date

04/06/2023

Property Type

Single Family Residence

Property City

Palm Desert

Property State

Loan Term (months)

Lien Type

1st Mortgage

Payment Type

Interest Only

Property Value

$2,200,000

Previous Loan Balance

$1,090,000

Loan-to-Value

67%

Location Type

Suburban

Property Condition

Excellent

Occupancy at Closing

Tenant-Occupied

Number of Units

Building Square Footage

3,241

Lot Square Footage

10,454

Borrower's Plan

Short-Term Rental

Exit Strategy

Refinance

Borrower Credit Rating

Average

Interest Rate

11.5%

Deal Highlights

Quick Close

Cash Out

Deal Summary

Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $1,475,000 1st lien position equity cash-out loan secured by a single-family residence in suburban Palm Desert, CA. The property value was estimated at $2,200,000 so our loan-to-value was 67%. We paid off a previous loan balance of $1,090,000 and provided the Borrower with the desired funds. The Borrower needed to refinance this short-term rental to pull cash out and place it into their business. The Borrower plans to keep using this as a short-term rental and refinance the loan prior to the maturity date. The subject property was in excellent condition and is approximately 3,241 square feet set in a 10,454-square-foot lot. The Borrower had average credit. The interest rate was set at 11.5%. The loan term was set at 24 months. This SFR private money loan was funded in April 2023.