An experienced real estate investor from Sacramento closed an 80% LTV private money cash-out bridge loan to free up capital needed to buy another distressed property that had come on the market.
The client was a full-time realtor with several rental houses, who also flipped 10-15 homes a year in the Sacramento area. Our subject property was a free and clear fix and flip property listed on the market for sale, which was likely to resell within the next 2-3 months. The agent/investor needed the money within ten days to close on another property that had just gone under contract with a 10-day escrow period.
For the private money real estate investment fund lending the money, this loan was an excellent opportunity, even as a cash-out 80% Loan-To-Value (LTV) mortgage. The borrower had a lengthy list of successfully flipped homes with excellent results plus a low-leverage rental portfolio. Borrower experience was key to attaining the 80% LTV loan whereas the fund usually likes cash-out bridge loans at 65-70% LTV.
Private Money Bridge Loan Terms:
- $140,000 Loan Amount (80% LTV)
- 12-Month Term
- No Prepayment Penalty