Featured Loan$700,000 Industrial Warehouse Second Mortgage
Loan Amount: $700,000
Loan-To-Value: 70% Combined Loan-To-Value (CLTV)
Situation & Challenge
The owner of this San Diego warehouse needed capital for improvements on the property but didn’t want to refinance the existing first mortgage, with its very low interest rate and a prepayment penalty still in effect for another six months.
The challenge was to find a private lender that would do a 12-month bridge loan in the second position on a warehouse. It’s not the easiest loan to place, but financing options are out there if you know where to look.
Solution & Result
First Capital Trust Deeds worked with a San Diego-based private mortgage fund that knew the area and got comfortable with the short-term nature of the loan, which would be paid off within 6-9 months, or after the prepayment penalty period expired.
After the appraisal came in, the private lender issued loan docs for $700,000 on the bridge loan. This loan paid off in just under nine months as the owner rolled the first and second into a brand new first mortgage on the entire property.