Crescent Lenders recently took a 1st trust deed position on a $2.1 million dollar loan for a rehab project in Los Feliz, California.
This isn't the first time they've funded a fix and flip project in Los Angeles, California.
The subject collateral is a 3,751 square foot house on a 21,566 square foot lot.
It has 4 bedrooms with 3.5 bathrooms, a separate studio over the garage and a swimming pool.
Purchased in 2018 for $2.3 million dollars, the investor made $400,000 worth of capital improvements in an effort to increase the property value and sell it for a nice profit.
The home owner had an existing bridge loan with a different lender for $2.6 million dollars.
The term of this loan had expired and the borrower was unable to complete the flip portion of the fix and flip transaction
In order for the borrower to receive funding, Crescent Lenders required an additional cash infusion of $500,000 from the investor to increase his equity stake.
The property was recently on the market for $3.9 million dollars, however the owner has recently reduced the asking price to $3.4 million dollars.
Crescent Lenders' conservative belief is the property will sell for between $3.1 and $3.3 million dollars in the next 6 months.
With Crescent Lenders $2.1 million dollar bridge loan, this equates to roughly a 65% loan to value ratio.
Since the property is newly remodeled, in a good location and the borrower is a successful repeat Crescent Lenders' client with lots of experience, it's deemed as a sound investment.
Based upon the low risk of the investment, the interest only rate is 9.00% annually for a 12 month term with a 4 month prepayment penalty.
About Los Feliz
The subject property sits within walking distance of Griffith Park which is situated in the eastern Santa Monica Mountain range in the Los Feliz neighborhood.
Spanning over 4300 acres the Griffith Park is most famous for the LA Zoo, the world famous Hollywood sign and the Griffith Observatory.
The park was named after Griffith J. Griffith who was convicted of shooting his wife in 1903 and was released from prison due to a land donation deal he made with the government where he gifted them the land which was transformed into a public park.
About Crescent Lenders' Fix and Flip Loans
Crescent Lenders has been funding Fix and Flip loans in the Southern California Region for more than a decade.
They've assisted numerous real estate investors, helping them secure bridge loans to complete their desired investment projects.
You can learn more about how to obtain fix and flip financing on their website.
