Private Money Loan for Oakland Multifamily Property Purchase

$1,183,000 private money loan for the purchase and rehab/improvement of a 6-unit multifamily property in the Clinton neighborhood of Oakland, CA. The purchase price was $1,300,000 and the investor group put down $390,000 in cash, resulting in a $910,000 loan at close (70% LTV). The property was 100% vacant, and thus conventional financing at the time of purchase was not an option. The investor knew the property was prime to rehab and lease-up at market rents. We agreed to provide up to $250,000 in additional funds to complete the improvements. The property should be stabilized within 6-12 months, with a loan to completed value of 65% or lower. This will enable the Borrower to refinance with conventional financing. We provided a loan of 70% loan-to-value at close and agreed to finance up to 75% of cost over a 12-month term. This 1st trust deed private mortgage closed in approximately 15 days.