An experienced Southern California real estate investor acquired this luxury property using an 82% LTV hard money bridge loan in Los Angeles from First Capital Trust Deeds.
This seasoned buyer and seller of high-end homes came to FCTD looking for an 82% LTV hard money bridge loan to leverage the acquisition of this luxury home in Los Angeles. For the buyer it was best to keep as much cash on hand to renovate the home, using the best materials, in order to maximize the resale price.
Since there was $150,000 of built-in protective equity at the time of purchase, and at least $450,000 in future equity on the after repaired value (ARV) when the project would be completed, the trust deed investor felt comfortable going to 82% Loan-to-Value (LTV) on the purchase money loan. Plus the borrower had a successful track record of buying and selling homes in Los Angeles county. This was a high-LTV loan that made sense overall, working out well for both the lender and borrower.
82% LTV Hard Money Bridge Loan In Los Angeles Terms:
- $700,000 Loan Amount (82% LTV of purchase | 56% of ARV)
- 11.00% Interest-Only
- $6,416/Month Payment
- 12-Month Term
- No Prepayment Penalty