Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago,

User Stats

1
Posts
0
Votes
Spencer Foosherian
  • Santa Barbara, CA
0
Votes |
1
Posts

options for private money bridge loan or 2nd (current LTV 35%)

Spencer Foosherian
  • Santa Barbara, CA
Posted

Currently looking to get advice on a $50-60k private money bridge loan for my parents. 

Scenario: first mortgage $450k, property value $1.5MM - LTV 35%. Location - Santa Barbara county, CA. - current mortgage payment $4500

My retired parents are preparing to sell their house and rent for 1-3yrs while looking for a few smaller properties to buy. They are on a fixed income and will not qualify for traditional lending (as far as I know). They need around $50K bridge loan to facilitate a move into a rental/living expenses while we renovate their current home and then sell (4-6 month plan).  Credit score 670 - 1 random late payment to PayPal during Oct 2021, aside from that, they have little debt 1-3 credit cards carry a balance - utilization at 50%.  

Value of property as is - $1.5MM based on very recent comps in the immediate vicinity.  Value after renovation will likely reach $2-2.2MM based on very recent comps in the neighborhood.

I am not sure what their options are
but seems like there should be some opportunity for an investor to earn 10-15% return on a short term loan. Does 10-20% seem too high? low? for the risk involved 

Renovations will be paid for by an outside investor and profits above the pre-renovation price will be split amongst the stakeholders in the project (i.e. parents, investors and project managers).

any advice or insight is appreciated

Loading replies...