An experienced real estate investor used a Southern California cash-out hard money blanket loan on two investment properties across one loan in order to have cash on hand to buy additional homes at distressed prices.
One of the things that we really enjoy about our jobs is that we’ve been able to work with dozens of successful real estate investors who manage their rental property portfolios and their flips intelligently and methodically. We get to see how these investors did over the years and how their strategy has evolved in concert with the various bull and bear markets in real estate.
For us, it’s interesting to see and hear their perspective on how they did it. We are impressed the most by those who grow slowly over time, buying one property a year or even one property every other year. Eventually, after a decade or two of plugging away, the numbers start to look very impressive. I guess that’s the miracle of compounding interest in effect or the 10,000 Hour rule, not to mention the great buying opportunity since the bottom of the real estate market in 2009.
We did a loan for one of these successful real estate investors, who has built up a nice rental portfolio while flipping a few properties each year for additional income. They contacted FCTD seeking a $300,000 cash-out loan against two free and clear properties. The $300,000 would be used to buy discounted homes to either flip or hold for as a long-term rental. For the borrowers, the key was to have the cash in the bank to be able to write a 5-7 day all-cash offer on a distressed property.
Because of the borrower’s track record, the cash-out blanket loan closed quickly in just eight days.
Hard Money Blanket Loan Terms:
- $300,000 Loan Amount (53% LTV)
- 10.50% Interest-Only
- 12-Month Term
- No Prepayment Penalty