First Capital Trust Deeds secured a $1,160,000 private money rental property portfolio loan against eighteen cash flowing property in Northern California.
The owner had been accumulating properties since the real estate market crash in 2008-2009, buying dozens of foreclosures and short sales to hold as long-term cash flowing rentals. During the 4-5 years since the borrower started buying properties and the values had nearly doubled. This created several hundred thousand dollars in accumulated equity in the rental property portfolio that they wanted to tap into to use for additional investment acquisitions.
In addition to accessing capital, the borrower wanted to reduce their interest rates from an average of 11.50% to 8.00% in order to improve their net cash flow.
FCTD worked with a Southern California private money investment fund to provide a 65% Loan-To-Value (LTV) cash-out loan that closed within three weeks of submitting the application.
18-Unit Private Money Rental Property Portfolio Loan Terms:
- $1,160,000 Loan Amount (65% LTV)
- 8.00% Interest-Only
- 5-Year Fixed Rate Loan
- 3-Year Sliding Scale Prepayment Penalty: 3%, 2%, 1%; No PPP in Years 4 & 5