85% LTV Hard Money Bridge Loan For Discounted Triplex

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85% LTV Hard Money Bridge Loan For Discounted Triplex

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
Do you have a similar financing scenario?
Inquire about your financing options with FCTD.