Bridge Loan for Luxury Home Purchase in Woodside, California

Yieldi, a direct lender for investment properties nationwide, funded an $8,500,000 1st lien position bridge loan for the acquisition of a single-family home in Woodside, California. The purchase price was $15,800,000 and the Borrower put down around 50% cash. The Borrower owns multiple properties without any debt and also had approximately $10,000,000 liquid cash. The loan-to-purchase price was 50%, but we cross-collateralized 3 other properties in Northern California that were owned free-and-clear by the Borrower and worth approximately an additional $15,000,000. This put our loan-to-value at around 30% in 1st position for all 4 properties. The Borrower has owned a commercial construction company for 14 years and a government contracting company for a few years. He has built and sold a of couple other small businesses which allowed him to buy his portfolio of properties all cash. His credit score was 750. He was in a unique situation. JP Morgan denied the loan request because the Borrower had a loan with them on another property and until he sold it, they wouldn’t extend him any more credit. Therefore, he had no choice but to go with private money. His exit strategy is to sell his current home and pay us off. That home is currently listed for sale. The interest rate for our loan is 12.5%. The loan term was set at 12 months. This SFR purchase bridge loan was funded in June 2023.