Private Money Loan for El Cerrito Multifamily Property Purchase

$1,200,000 private money loan for the purchase and rehab of a 7-unit multifamily property in El Cerrito, Contra Costa County, CA. The purchase price was $1,300,000 and the Borrowers put down $355,000 in cash, resulting in a $910,000 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 5 units as quickly possible, make cosmetic improvements, and lock-in market rents. We agreed to provide up to $290,000 in additional funds to complete the improvements over a 12-month term. The property should be stabilized within 12 months, enabling the Borrowers to refinance with conventional financing. We closed this 1st trust deed private mortgage in approximately 15 days.