Venice Beach, CA
2-4 Units Residential
Residential Ground-Up Construction01/30/2015
Lantzman Lending funded a 1st and 2nd position hard money loan totaling $2,385,000 secured by a 2-unit residential property in Venice Beach, Los Angeles. 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 2nd's 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 loan is 12 months, and the interest rate was 10.25%.