Los Angeles Private Lender Expands into Distressed Residential Market
October 17thLOAN AMOUNT: $1,500,000 and up
LOAN TYPE: Secured Revolving Line of Credit
MAXIMUM ADVANCE (LTC) Of total cost to ready property for market
- Program A 50.00%
- Program B 65.00%
- Program C 80.00%
INTEREST RATE: per year on rnoney out
- Program A 12.00%
- Program B 12.00%
- Program C 13.50%
LOAN FEE:
Per year on committed line amount - fees are charged in lieu of equity
- Program A 4.00% per year on the committed line amount
- Program B 4.00% per year on the committed line amount
- Program C 5.00% per year on the committed line arnount
All Programs: 1.00% per annum charged quarterly in arrears on the average unused (waived if average outstanding balance for quarter is above 65%).
MONTHLY PAYMENTS:
Interest-only on the actual amount outstanding
TERM:
12 months. 6 Month extension options are available
PREPAYMENT:
No prepayrnent penalty
MAXIMUM ADVANCE:
Up to 80% of the total cost required to ready a property for market (acquisition cost, cash for keys, & rehab budget)
GUARANTEES:
Limited to Full Recourse
COLLATERAL:
1st Priority Lien on each property financed
RELEASE PRICE:
Repay at par if inventory turnover meets covenants
OTHER FEES & COSTS:
$5,000.00 - $7500.00 refundable one time document preparation fee. A $350.00 transaction fee to cover the costs of inspection and appraisal for each property. All third party fees such as title and escrow, ALTA fees, recording, reconveyance and title policy costs.
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