First Capital Trust Deeds closed on a $300,000 hard money first trust deed on an investment condo in San Francisco. Due to the city’s rent control, the property value was limited to $450,000, which put the loan-to-value (LTV) ratio at 66.70%, typically higher than many hard money lenders like to go, but workable in this case.
With this loan, the borrower was shopping for the best terms and at first went with another lender who sent out loan docs cross-collateralizing the subject property with another property the borrower owned. However, the borrower was specific that crossing two properties as collateral was not an option. The other lender dropped out. Which brought the borrower back.
Luckily, FCTD didn’t withdraw the loan and were able to send loan docs out within a day, allowing the borrower to close the loan on-time.
Hard Money Financing Terms:
- $300,000 Loan Amount (66% LTV)
- 9.99% Interest-Only
- 36-month term (balloon loan)
- No Prepayment Penalty