Private Money Loan for Industrial Property in Bakersfield, California

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

07/28/2023

Property Type

Industrial

Property City

Bakersfield

Property State

Loan Term (months)

Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price

$325,000

Loan-to-Purchase Price

70%

Borrower's Contribution to Purchase

30%

Source of Borrower's Contribution

Cash

Location Type

Suburban

Property Condition

Good

Occupancy at Closing

Vacant

Number of Units

Building Square Footage

3,600

Borrower's Plan

Continue Occupancy

Exit Strategy

Refinance

Borrower Credit Rating

Good

Interest Rate

12%

Deal Summary

Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $225,000 1st lien position private money loan for the acquisition of a 2-unit industrial property in Bakersfield, California. We funded 70% of the $325,000 purchase price, while the Borrower contributed 30% cash at closing. The Borrower is an existing tire and repair business in town. This purchase represents their second location. The 3,600-square-foot building was vacant and in good condition with all major operating systems in place and functional. A small office building is located on-site and was newly renovated. The Borrower had good credit. They plan to occupy the property for their business and refinance approximately 12-18 months from the loan close with a conventional bank line of credit. The interest rate was 12%. The loan term was set at 24 months. This private money loan was funded in July 2023.