Private Money Loan for Single-Family Residence in Rancho Cucamonga, California

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

06/01/2023

Property Type

Single Family Residence

Property City

Rancho Cucamonga

Property State

Loan Term (months)

Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price

$1,200,000

Loan-to-Purchase Price

68%

Borrower's Contribution to Purchase

32%

Source of Borrower's Contribution

Cash

Location Type

Suburban

Property Condition

Excellent

Occupancy at Closing

Tenant-Occupied

Number of Units

Building Square Footage

3,273

Lot Square Footage

21,750

Borrower's Plan

Long-Term Rental

Exit Strategy

Conventional Loan

Borrower Credit Rating

Average

Interest Rate

10.50%

Deal Summary

Karpe Real Estate Center, a direct private lender for Central California real estate, funded an $820,000 1st lien position private money loan for the acquisition of a single-family home in Rancho Cucamonga, California. We funded 68% of the $1,200,000 purchase price, while the Borrower contributed 32% cash at closing. They were purchasing the property for a family member to live in on a long-term lease. They owed back taxes and solar panel lease payments on the property which were paid off by our loan. The Borrower went with a private money loan for speed and to clean up the tax and solar situation. They plan to continue leasing the property and will eventually refinance with a conventional loan as an exit strategy. The subject property was in excellent condition and tenant-occupied at closing. It is approximately 3,273 square feet, set in a 21,750-square-foot lot. The Borrower had average credit. The interest rate was 10.50%. The loan term was set at 36 months. This private money loan was funded in June 2023.