An experienced real estate investor acquired a Concord condo using a 12-month California private money bridge loan from First Capital Trust Deeds.
This was another one of those loan scenarios where the real estate investor needed to use a short-term private money bridge loan to acquire and stabilize the property with a tenant before they could obtain a conventional mortgage against the home. Since this loan was funding toward the end of the calendar year, the buyers only expected to use the bridge loan for 4-5 months, or until their income taxes reflecting the rental income from this Concord condo were filed.
For the individual trust deed investor who made the loan, they were pleased with the overall financial strength of the borrower. In addition to the borrower, the lender was local to the East Bay and familiar with the condominium development. So it was a natural fit matching trust deed investor and borrower. The 66% Loan-to-Value (LTV) was a little higher than the trust deed investor would have liked, but the reassurance that the borrower would not have any problems refinancing out of the loan after their income taxes were filed in the coming 4-5 months made up for the higher than preferred risk.
California Private Money Bridge Loan Terms:
- $100,000 Loan Amount
- 11.00% Interest-Only
- $916/Month Payment
- 12-Month Term
- 3-Month Prepayment Penalty