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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
08/15/2023
Property Type
Property City
Bakersfield
Property State
CA
Loan Term (months)
24
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$2,000,000
Loan-to-Purchase Price
51%
Borrower's Contribution to Purchase
20%
Source of Borrower's Contribution
Equity in Another Property
Property Value
$2,000,000
Loan-to-Value
51%
Location Type
Rural
Property Condition
Excellent
Occupancy at Closing
Owner-Occupied
Number of Units
2
Building Square Footage
30,000
Borrower's Plan
Continue Occupancy
Exit Strategy
Refinance
Borrower Credit Rating
Good
Interest Rate
11.50%
Deal Summary
Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $1,600,000 private money loan for the acquisition of an industrial property in Bakersfield, California. The purchase price was $2,000,000. The Borrower contributed $400,000 cash at closing, a 20% down payment, but they also used the equity in another property to give us additional collateral since 80% loan-to-value is way too high for private lending. The Borrower is a local business that has been operating for 40 years. They went under contract to purchase a 2nd location and used their current location as the additional collateral. The loan was secured by both locations in 1st position and resulted in a 51% LTV for us. The subject property was in excellent condition. It is approximately 30,000 square feet. The Borrower had good credit. They plan to occupy the property and will eventually refinance as an exit strategy. The interest rate was 11.50%. The loan term was set at 24 months. This CRE private money loan was funded in August 2023.
Funded By
Karpe Real Estate Center
Private Lending for Central California Real Estate - Bakersfield, Fresno, Central Valley, Sacramento | Est. 1926
Dealmakers
Stephen Hale
Broker-Associate
CA DRE Lic. 01997969