Business Purpose Private Money Loan In Chino

,
Business Purpose Private Money Loan In Chino

First Capital Trust Deeds closed a business purpose private money loan in Chino, California, going in first position to 65% Loan-to-Value (LTV) for a self-employed real estate investor. The new loan replaced the existing private financing that was coming due in the next few months.

Each month, we see several loan scenarios where a borrower needs a new private money loan to pay off an existing private money loan. Whether it be seller financing or a loan from a family member that was used to acquire the property. With the seller financing and family mortgages we often see have a 24-month balloon payment date that needs to be met. Even though family members may be kind and loving, they also have other needs for the money. Plus, in order to keep the harmony at the holidays, it’s nice to pay back the money!

And the same goes for seller financing balloon payments. We’ve been seeing quite a few loan requests, especially in Oregon and Washington on cannabis properties. Where the seller financing has already come due and the lender filed a Notice of Default (NOD) to accelerate the repayment of their loan via refinance or foreclosure. Private money lenders are usually okay with recent NOD activity from seller financing and can work with borrowers on new financing.

This situation in Chino was very simple. Seller financing was coming due and the homeowner wanted to get the loan refinanced before the deadline and also to get cash-out for another real estate investment project. The exit strategy was to refinance out of the private money loan within 18 months into a conventional loan if they decided to keep the property. Very simple and very doable, which is why from start to finish, it only took two weeks to close.

Business Purpose Private Money Loan Terms:

  • $286,000 Loan Amount
  • 10.00% Interest-Only
  • 240-Month Term
  • 12-Month Guaranteed Interest (Investor Wanted at Least 12 Payments)
Do you have a similar financing scenario?
Inquire about your financing options with FCTD.