Hard Money Loan on Rental Property in Santa Cruz California

[Mary Lacerte]

Investment Info:

Single-family residence hard money loan investment in Santa Cruz.

Purchase price: $960,000
Cash invested: $882,000

Hard Money Loan on a rental property. Our borrower had "deal equity" so the appraisal came in higher than the purchase price. This is a "relationship" borrower so we were able to loan with a higher LTV.

What made you interested in investing in this type of deal?

Simple, there was enough equity in the deal. We are a Hard* Money lender. The equity in the property is our #1 interest in making a loan. There was enough equity in the deal.
*Hard (refers to the "hard asset" the real estate).

How did you find this deal and how did you negotiate it?

The borrower was up against 3 other buyers. Our speed in closing made him the winner. The seller was in need of quick cash. We can close in less than a week.

How did you finance this deal?

Private Money making a Hard Money Loan

How did you add value to the deal?

Our low interest rate, minimal document requirements, and our speed to fund. Borrower would not have gotten the deal if we took weeks to close. We like to call this "opportunity loss". This must be factored into a deal. Move too slow and you loose the deal!