Private Money Loan for San Leandro Multifamily Property Acquisition

$2,489,500 private money loan for the purchase and rehab of a 14-unit multifamily property in San Leandro, Alameda County, CA. The purchase price was $2,970,000 and the Borrowers put down $891,000 in cash, resulting in a $2,079,000 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 all the units as quickly as possible, make cosmetic improvements, and lock-in market rents. We agreed to provide up to $410,500 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 20 days.