© copyright 2020, All California Lending. All right reserved
Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
© copyright 2020, All California Lending. All right reserved
Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
This transaction involved a great property in the upscale Blackhawk community. Our clients needed a loan that would lend on after repair value, or as complete value, for this property. They intended to upgrade the existing finishes to make the home more modern as well as add a substantial amount of square footage, substantially increasing the value of the property. In addition, they required a loan that not only would lend based on the as complete value, but that would also allow subordinate financing in the form of a seller carry back.
We were able to put together a hard money loan on this Blackhawk property that allowed them to finance most of the purchase price, cost of construction and interest reserves through the anticipated completion date. Our loan amount actually exceeded the purchase price on this particular deal!
The investors funding the loan were very happy due to the location and anticipated as complete value, and our borrower clients were very happy that we could facilitate such an aggressive loan without the need to give up any of their profit to investors or equity partners on the back side when the property is sold. Many gap funders or equity partners willing to lend in this manner require an equity position, taking up to 50% of the profit on the deal. While our loan was not cheap, it was much less expensive than giving up participation in this high quality deal.
Please visit our Contra Costa Hard Money Loans page for more information on this type of transaction. We typically can help obtain financing up to 65-75% of the as complete or after repair value on most properties located within California. In addition most of our loans of this nature will allow seller carry back funding or subordinate financing through gap funders or equity partners.
Chris Goulart specializes in creative private money solutions secured by real estate throughout California. The private hard money loans he works with are typically funded by individuals and groups outside the more traditional banking industry. He has specialized in private hard money loans for over a decade and is fully licensed both at the state level, through the DRE, as well as the national level, through the NMLS.
