First Capital Trust Deeds secured a 77% LTV private money bridge loan for a Riverside real estate investor client, using the loan for several months before refinancing into a long-term 30 year fixed conventional loan.
We see this happen quite frequently where investors sourced a discounted property that needed some serious TLC. In order to close on the property quickly, they use private money financing to make the purchase. Then, after making renovations, claiming the rental income on their personal income taxes plus price appreciation, they refinance into a conventional mortgage using the new appraised value which offers attractive terms in the 80% LTV or lower range.
This is a pretty common strategy that we see active investors employing as they continue to buy discounted cash flowing properties with private money loans and then refinance out into 4.00%-ish long-term conventional financing. It makes a lot of sense for those who are doing this successfully. And in this current market, there are a lot of investors finding these properties and building a significant real estate portfolio for the long run.
77% LTV Private Money Bridge Loan Terms:
- $215,000 Loan Amount – 77% LTV
- 11.00% Interest-Only
- $1,970/Month Payment
- 12-Month Term
- No Prepayment Penalty