A Los Angeles real estate investor used a cash-out 12-month Encino hard money bridge loan for the down payment on another fix and flip property nearby.
Our Los Angeles area borrower client utilized the equity in their free and clear Encino condominium as the down payment funds on the acquisition of a fix and flip short sales and foreclosure resource a few miles away. We see this quite a bit, especially in Orange and Los Angeles Counties, where an investor will use 65% of the equity in one of their investment properties in the form of a hard money bridge loan as down payment funds for another acquisition that needs to close quickly.
In this case, the borrower needed funds available within a week because they had written a 14-day offer on the other property. No problem.
This loan went quickly as the trust deed investor did a five minute site inspection and had loan docs drafted up within 24 hours. The borrower received their funds and was also able to close the other purchase with FCTD and the same trust deed investor the following week right on time.
12-Month Encino Hard Money Bridge Loan Terms:
- $129,000 Loan Amount (65% LTV)
- 11.00% Interest-Only
- $1,182/Month Payment
- 12-Month Term
- No Prepayment Penalty
- 4 Days from Application to Recording