Private Money Loan for Oakland Multifamily Property Rehab Project

$588,750 private money loan for the purchase of a 6-unit multifamily property in the Fruitvale neighborhood of Oakland, CA. The purchase price was $630,000 and the Borrowers put down $189,000 in cash, resulting in a $441,000 loan at close (70% LTV). Due to recent vacancy and rents that are 25%+ below market, conventional financing at the time of purchase was not an option. The Borrowers plan to turn over at least 4 units as quickly possible, make cosmetic improvements, and lock-in market rents. We agreed to provide up to $147,750 in additional funds to complete the improvements over a 12-month term. The property should be stabilized within 12 months, with a value of $1.2MM, enabling the Borrowers to refinance with conventional financing. We closed this 1st trust deed private mortgage in approximately 10 days.