The borrower acquired the subject property in October 2019 for $2.4 million, making a down payment of $840,000 (35% of the purchase price).
Recently, Crescent Lenders evaluated the property's worth to be $2.6 million, considering the 2019 purchase price and the addition of a new roof costing around $80,000. Moreover, real estate prices have risen since the purchase.
The borrower's down payment and improvement expenses totaled $900,000.
Based on the estimated value of $2.6 million, the loan-to-value ratio was calculated to be 66%.
The price per square foot stood at $260, aligning with comparable building types and recent sales.
The borrower intends to repay the hard money loan using the cash flow generated by another property they own. In a worst-case scenario, they have the option to sell that property or refinance with a bank.
The borrower plans to utilize the obtained funds from a cash-out amounting to $225,000 to establish a new restaurant business in Culver City.
Crescent Lenders is a top rated private money lending company providing loans 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 require a bridge loan for a 1031 exchange transaction in Long Beach or seek to refinance an existing hard money loan that will soon be due for an investment property in Glendale, Crescent Lenders possesses the necessary expertise and resources to provide you with the short-term financing you require for your real estate projects.
Learn more about why we are the best hard money lender in Los Angeles and get started on your real estate investment dreams today!
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Los Angeles, California