Case Study$715,000 Bridge Loan to Renovate a San Diego Vacation Rental
Loan Amount: $715,000
Loan-To-Value: 40% LTV
Term: 12 Months
Situation & Challenge
The owner of a popular vacation rental wanted to renovate the home, which hadn’t been updated since the previous remodel back in the 1980s, making it look like a time capsule save besides a collection of recent magazines on the coffee table and a flat screen TV in the living room.
Solution & Result
First Capital worked with a San Diego-based private money fund to close quickly on a $715,000 bridge loan, providing a $250,000 cash-out to remodel the interior and address salt air corrosion on the exterior of the beach house.
The owner completed renovations within five months and had the property booked for vacation rentals at higher rates than before. They refinanced into a 30-year fixed conventional loan after holding the private money bridge loan for ten months.