Featured LoanCOVID-19 - Bay Island Newport Beach Bridge Loan
Loan Amount: $4,200,000
Loan-To-Value: 50% LTV
Private Money Bridge Loan
First Capital Trust Deeds closed a $4,200,000 private money bridge loan on an investment home in the exclusive Bay Island community of Newport Beach.
For those who don’t know about Bay Island, ownership of a home on the island is taking ownership of the island corporation, much like owning an apartment in a co-op building in New York City. Loans are made against the share of the island corporation rather than against the deed to real estate. Loan-To-Value ratios are limited by the island corporation to 50% of appraised value of the real estate, which is the owner’s share of the island corporation.
FCTD, the lender, borrower, attorneys for the island, and title company worked together to complete an 18-month loan for $4,200,000, which featured a 12-month interest reserve, covering payments during the first year.