A Sacramento real estate investor wanted to use the equity in a rental property owned free & clear to acquire another rental, coming in with zero money down. First Capital Trust Deeds worked with a Northern California real estate investment office with a hard money lending division to provide the investor with the ideal financing they were seeking.
The loan was structured with a 24-month term and 9-month guaranteed interest clause, which is a fancy way of saying that the lender wanted nine payments on the 24-month loan. FCTD also structured the loan to have a 6-month interest reserve, which is means that the lender held back the first six payments from loan proceeds.
Ideally, the borrower will refinance out of the loan into either two new Fannie Mae 30-year fixed rate loans or into two new Non-QM 30-year fixed rate loans – one for each property.
Private Money Blanket Loan Terms
Loan Amount: $295,000
Term: 24 Months