Ground-Up Construction Loan for Residential Property in Venice Beach, Los Angeles, California

Funded by Lantzman Lending

$2,385,000

Deal Details

Private Loan Type

Residential Ground-Up Construction

Approx. Funding Date

01/30/2015

Property Type
2-4 Units Residential
Property City

Venice Beach

Property State

CA

Loan Term (months)

12

Lien Type

1st Mortgage

Payment Type

Interest Only

Previous Loan Balance

$1,045,000

Loan-to-Value

60%

Interest Rate

10.25%

Deal Summary

Lantzman Lending, a hard money lender, funded a $2,385,000 1st lien position ground-up construction loan for a residential property in Venice Beach, Los Angeles, CA. The Borrower needed to pay off the previous 1st loan balance of $1,045,000 and obtain a 2nd mortgage to complete the construction project. This was a challenging loan considering construction was already in progress. The main obstacle was having title insure the property, which required a Borrower Indemnity Agreement & Unconditional Lien Waivers from contractors. We were able to refinance the 1st mortgage and provide a 2nd in the amount of $1,340,000 which will be held in an escrow fund control and disbursed as the construction project progresses. Lantzman doesn’t normally do 2nds but this was an exception since we are in 1st position. The Borrower plans to sell the property for approximately $4,000,000 upon completion so the loan-to-value is 60%. The term for the 1st and 2nd trust deed bridge loans is 12 months, and the interest rate was 10.25%. This hard money ground-up construction loan was funded in January 2015.

Funded By

Lantzman Lending

San Diego, CA