Category Archives: 2017 Closed Loans

$1,350,000, Refinance, SFR Investment Property

San Diego, CA. December 15, 2017Two experienced real estate developers needed a short-term bridge loan and had close in less than ten days.

The borrowers joint ventured with the existing owner of a large residential single family investment property on an oversized lot in Banker’s Hill. The plans are in place to remodel the existing house and build 20 additional apartment units. The Loan Company funded a 1st Trust Deed $1,350,000 loan or less than 68% LTV ratio, excluding the permit value for the proposed units, in time to meet the borrower’s deadline.

The exit strategy is for the borrowers to refinance with a construction loan from a conventional lender. The Loan Company provided the borrower an excellent short-term bridge loan at a competitive private money rate and terms.

$507,000, Purchase, Commercial Lots

Chula Vista, CA. November 30, 2017A repeat Loan Company borrower needed assurance they had a lender that could perform when they were ready to close and do it with no hassle.

The borrowers were experienced real estate investors and purchased two commercial lots for $835,000. The property is in a prime commercial location for the development of a future express car wash. The Loan Company funded a $507,000 1st Trust Deed loan or 61% loan to purchase price.

The exit strategy is for the borrowers to refinance with a construction loan either through another third party lender or The Loan Company. The Loan Company provided the borrower an excellent short-term bridge loan at a competitive private money rate and terms.

$409,000, Purchase, Mixed-Use

San Diego, CA. November 21, 2017. A real estate investor and owner of a very successful deli was looking for a second location to expand his popular sandwich shop. The borrower and his wife came across this mixed use investment property with a purchase price of $683,000, however conventional financing was not yet possible until they got their business financial statements in order and presentable for banks to consider.

The Loan Company was able provide a $409,000 1st Trust Deed loan or 60% loan to purchase price. The investment property consisted of a 100% leased, multi-tenant, mixed-use commercial property with three residential units and one commercial unit.

The exit strategy is for the borrower to refinance with a conventional lender once their business financials are presentable in a couple of years. The Loan Company provided the borrower an excellent term loan at a competitive private money rate and terms.

$715,000, Refinance, Multi-Tenant Retail

San Diego, CA. November 7, 2017. The borrowers are left hanging when a conventional lender can’t perform at the last minute.

 A couple of successful real estate investors had committed to purchase an investment property and wanted to pull some cash-out of an existing free and clear property to facilitate the acquisition. They had a refinance cash-out loan lined up with a conventional lender, but they failed to close at the last minute leaving the borrowers scrambling to find another lender within about a week.

 The borrowers heard The Loan Company could move fast. They called to see if we could provide a $715,000 refinance cash-out loan 65% LTV on a completely remodeled fully leased multi-tenant retail building in the San Diego State University area on El Cajon Blvd. The purpose of the funds was to purchase another investment property that was in escrow to close in a matter of days. The Loan Company performed in time helping the borrower purchase the other investment property.

 The borrowers were going to immediately refinance our bridge loan with another conventional lender as the exit strategy. The Loan Company provided the borrower an excellent short-term bridge loan at a competitive private money rate and terms.

$1,595,000, Purchase, 7-Unit Apartment

San Diego, CA. October 31, 2017. An investor had an opportunity to purchase a dilapidated, underperforming residential apartment at a below market price and needed to close quick.

 The property consisted of seven units in three detached buildings with a unique courtyard with character located in the Hillcrest Community of San Diego. There was severe deferred maintenance with rents below market that created the opportunity for huge added value. The Loan Company was able to help this experienced investor acquire the property with a $1,595,000 loan commitment that included funds for the remodel and closed the loan within a couple of weeks. The loan funded 80% of the cost, and upon completion and stabilized occupancy conservatively estimated less than a 70% loan to value ratio.

 The ability of the borrower to close on the purchase quickly resulted in getting a below market price. The exit strategy is for the borrower complete the remodel creating the added value and immediately resell the property.

 The Loan Company provided the borrower an excellent short-term bridge loan

$550,000, Purchase, Multi-Family Residential

San Diego, CA.  A Loan Company repeat borrower and experienced real estate investor was in a competitive bidding war on a two-unit residential investment property and needed a short-term bridge loan and also needed to close within 10 days.

The Kensington area property required $100,000 in repairs and upgrades, however with the borrower’s experience in successfully completing numerous projects similar to this one, an offer of $605,000 was confidently made and accepted.

The Loan Company made a 1st Trust Deed loan of $550,000 with $100,000 held back for renovations. After completion of the remodel, local comps suggest an after repair value of $850,000 or 65% LTV ratio.

The exit strategy is for the borrower to sell the subject property upon completion of the remodel. The Loan Company provided the borrower an excellent short-term bridge loan at a competitive private money rate and terms.

$1,075,000, Purchase, SFR Investment Property

San Diego, CA.  October 19, 2017. An experienced real estate developer and repeat Loan Company borrower needed a short-term bridge loan and had less than two weeks to close.

The borrower was presented with an opportunity to purchase a residential single family investment property in the Crown Point area near Mission Bay. He plans to remodel and modernize the existing home. The Loan Company funded the request for a 1st Trust Deed $1,075,000 loan, which includes a holdback of $250,000. The after repair value is estimated at $1,750,000 or 61% LTV ratio.

The exit strategy is for the borrower to sell the subject property upon completion of the remodel. The Loan Company provided the borrower an excellent short-term bridge loan at a competitive private money rate and terms.

$2,500,000, Refinance, 4 SFR’s

Coronado, CA. October 13, 2017An experienced developer needed to buy out a partner and finish building four single-family detached homes in Coronado not more than a few blocks from the beach.

The borrower is an experienced developer having completed numerous projects of similar nature in Coronado. The proposed project consists of two, approximately 2,252 sq.ft. homes and two 1,292 sq.ft. homes currently under construction. The borrower owned the property free and clear, and The Loan Company provided a $2,500,000 refinance loan or 54% of total cost to buy out a partner and provide funds to complete the construction of the four homes. A conservative estimate of value for the four homes at completion is more than $6.3 million or 39% loan to value ratio.

The buy-out of the partner allowed the borrower to move forward in completing the project. The exit strategy is to complete the construction of the four homes and immediately sell the units.

The Loan Company provided the borrower an excellent refinance construction loan at a competitive private money rate and terms.

$550,000, Purchase, 4-Unit Apartment

Lakeside, CA. October 11, 2017. A repeat borrower of The Loan Company had an opportunity to purchase a 4-plex residential investment property at a below market price, but because of a discrepancy with zoning, he was unable to obtain conventional financing. Also, since he had funds tied up in another construction project, he was looking for a higher advance rate than what is typically offered for this type of transaction.

The property consisted of four detached buildings with a detached two–car garage in the Lakeside Community of San Diego. The borrower owned the adjacent properties and by acquiring the subject property it would help resolve the zoning discrepancy. The Loan Company was able to help this experienced investor acquire the property with a $550,000 loan commitment and closed the loan within a couple of weeks. The Loan Company also cross collateralized his adjacent properties to achieve a combined loan to value ratio of 62% allowing the borrower to close on the subject property with less down.

The ability of the borrower to close on the purchase of an investment property with a zoning discrepancy and with less downpayment than what is typical, resulted in the borrower getting a below market price. The exit strategy is for the borrower to resolve the zoning issue, then refinance with a conventional lender and hold the property long term.

The Loan Company provided the borrower an excellent short-term bridge loan at a competitive private money rate and terms.

$350,000, Purchase, SFR

Chula Vista, CA. September 28, 2017. The borrower was faced with a fast approaching close of escrow date in which the seller was unwilling to extend and the previous lender unable to perform.

The experienced real estate investor was locked into the deal with the possibility of losing his deposit if he didn’t close on time. The recently split subject property consisted of two separate parcels in which the borrower required two separate loans.

Referred by an existing Loan Company borrower who has first-hand experience of our ability to move fast, called to see we could help. The Loan Company was able to offer two loans, the first a $350,000 1st Trust Deed loan which includes a $31,000 holdback on the front parcel, which consists of a 1,576 sq. ft. 3BR/2BA SFR. After the plans to remodel are complete, the home has an estimated after repair value of $575,000 or 61% LTV.  The second loan was a $303,000 1st Trust Deed construction loan to build a 4BR/2BA 1,800 sq. ft. at the rear lot. Sales comps in the area support a $590,000 value upon completion or 51% LTV. The Loan Company performed in time helping the borrower follow through on the purchase of the investment property.

 The borrower’s plans are to immediately sell each property upon completion of the remodel/construction as the exit strategy. The Loan Company provided the borrower an excellent short-term bridge loan at a competitive private money rate and terms.