Oakland, CA

$1,270,000

Multifamily

Commercial Property Value Add

03/27/2016
Transaction by
Security Financial Services
$1,270,000 private money loan for the purchase and rehab of a 7-unit multifamily property in the Uptown neighborhood of Oakland, CA. The purchase price was $1,350,000 and the Borrowers put down $405,000 in cash, resulting in a $935,000 loan at close (70% LTV). Due to significantly below market rents and deferred maintenance, 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. SFS agreed to provide up to $335,000 in additional funds to complete the improvements over a 12-month term. The property should be stabilized within 12 months, with a value of over $2MM, enabling the Borrowers to refinance with conventional financing. We closed this 1st trust deed private mortgage in approximately 15 days.