A Los Angeles real estate investors used an 85% LTV hard money bridge loan to acquire a discounted triplex with a little help from First Capital Trust Deeds.
If a real estate investor “buys the property right” (below market value), then they can push the upper bounds of the hard money Loan-to-Value (LTV) limits.
That was the case on this triplex in Los Angeles where the investor acquired this cash-flowing property for a steep discount and were able to use an 85% LTV hard money bridge loan to close quickly on the purchase.
Usually, our trust deed investors and hard money lenders have 75% LTV as their baseline for 12-month bridge loans. However, when the purchase price is well below market value, like this one, they’ll stretch it up to 80-93% LTV, depending on the property condition, cash flow, and the borrower’s real estate track record. This loan scenario satisfied the lender’s criteria to go above 75% LTV, which made the buyer happy because within four months, they had resold the property for a quick $100,000+ profit.
85% LTV Hard Money Bridge Loan Terms:
- $520,000 Loan Amount (85% LTV)
- 11.00% Interest-Only
- $5,683/Month Payment
- 12-Month Term
- No Prepayment Penalty