A self-employed homeowner with a beautiful home obtained a Bakersfield owner occupied private money loan providing cash-out private money loan to close quickly on a discounted investment property. Under normal circumstances, the homeowner could have taken out a conventional loan but they needed to strike fast and acquire the other property.
We see this almost every month where a borrower, usually someone in the real estate industry, secured a great price on an investment property, wrote an “All Cash Offer” and then went about finding the cash to close on that transaction. In this situation, our client used the equity in their free and clear home to get the $300,000 within five days, which provided enough time to close the other transaction.
The trust deed investor, who in the past, had had reservations about lending again in Bakersfield after suffering some significant loan losses in the downturn, moved quickly to fund this loan. That’s because it was a great home with $200K+ of protective equity, the overall strength of the borrower, and use of funds (acquisition of steeply discounted investment property) made a lot of sense. Plus, the trust deed investor could see that the borrower would probably refinance into a conventional loan within 6-9 months. Overall, this loan just made sense and redeemed the trust deed investor’s faith in Bakersfield.
Private Money Financing Terms:
- $305,000 Loan Amount (60% LTV)
- $2,106/Month Payment
- 24-Month Term
- No Prepayment Penalty