Featured Loan16-Home Hard Money Blanket Loan in Los Angeles
Loan Amount: $3,500,000
Loan-To-Value: 50% LTV
Term: 24 Months
Situation & Challenge
The owner of 16 rentals on the same street in LA needed to payoff a maturing bank loan and get another $1,000,000 cash-out to complete another project nearing completion. To expedite the loan closing, it would be best to forego obtaining appraisals on all 16 homes because coordinating appraisals would take too long, especially as a mini REFI-BOOM had started in the conventional mortgage market, putting appraisal turn times at 3 weeks out.
Solution & Result
FCTD placed the loan with a Northern California real estate investor that started lending out their funds back in 2015 rather than buying new properties. (FCTD has several real estate investors that became lenders (trust deed investors) back in 2015-2016). The NorCal lender, which holds loans in their portfolio, flew down to Los Angeles to meet the owner at the properties and funded the loan within a few days. Luckily, this loan funded at the beginning of March prior to COVID-19 impacting the market. For similar situations, it would be smart for borrowers to expect reduced Loan-To-Value (LTV).