Private Money Loan for San Jose Multifamily Property Purchase

Private money loan for the purchase of a 9-unit multifamily property near Downtown San Jose, funded in February 2015. The purchase price was $1,550,000 and the Borrower put down $550,000 in cash. Due to recent vacancy and rents that are 25% below market, conventional financing at the time of purchase was not an option. The Borrower plans to turn over as many units as possible, make cosmetic improvements, and lock-in market rents. The property should be stabilized within 12 months, with a value north of $2MM at that point, enabling the Borrower to refinance with conventional financing. We provided a 1st trust deed loan at 65% loan-to-value for a 12-month term. The transaction was completed in 15 days.