Richmond, CA

$805,500

Multifamily

Commercial Property Value Add

01/06/2016
Transaction by
Security Financial Services
$805,500 private money loan for the purchase of a 6-unit multifamily property in Richmond, Contra Costa County, CA. The purchase price was $887,000 and the Borrowers put down $266,500 in equity that had been raised from local investors. This resulted in a $620,900 loan at close (70% LTV). Due to significantly below market rents, and the Borrowers needed to act very quickly on the purchase, conventional financing was not an option. The Borrowers plan to turn over at least 4 of 6 units as quickly possible, make cosmetic improvements, and lock-in market rents. SFS agreed to provide up to $184,600 in additional funds to complete the improvements over a 12-month term, or 75% of total cost. 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 15 days.