Our borrower sought to consolidate two private money loans worth $1.2 million dollars and obtain a new cash-out loan of $800,000, leading to a new 2nd position hard money loan of $2 million dollars with a six-month prepaid interest period.
The collateral for the private money loan comprised three recently constructed residential condos located in the Beverly Hills area, with a collective worth of over $5.1 million dollars ($825 per sq. ft.).
The borrower, a seasoned developer, planned to utilize the cash-out funds to finish building a new laundromat project in Los Angeles.
One of our investors in this loan expressed interest in purchasing the property from the current owner and reached an agreement with the borrower.
If, for any reason, the borrower could not repay the loan when it matures in 18 months, or if the loan becomes delinquent for any reason, this would trigger an automatic sale to the co-lender/investor for $5.3 million dollars ($850 per sq. ft.).
The co-lender/investor would then become the new borrower for a period of six months, giving them sufficient time to refinance the loan into permanent financing, thereby paying off the 2nd position hard money loan.
The borrower had an existing mortgage loan with Wells Fargo with a balance of $2.23 million dollars at an interest rate of less than 4.0%.
The total combined loan-to-value ratio was 83% based on an estimated valuation of $5.15 million.
Our borrower had excellent credit and has received more than 15 loans from Crescent Lenders over the past five years.
Crescent Lenders is a top rated private money lending company providing loans in and around The Los Angeles area.
We have been providing loans to commercial, residential and industrial California real estate investors for over a decade.
Whether you need a trust loan for an inherited property in Beverly Hills or you have a hard money loan coming due in Long Beach and need refinance, we would be happy to discuss lending options.
We are your California private lenders with a track record of success.
Suite #116, 999 Overland Ave
Los Angeles, California
90064