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Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
This transaction was a short term Pasadena commercial hard money second that we funded. The borrower had the property on the market, but needed cash to continue business operations and pay taxes. We were able to assist with a hard money second – leaving their existing first in place – allowing them to access the cash required while not having to refinance the existing debt on the building.
The property was unique, and had been on the market for a little while when we were contacted. The property was an auto dealership with auto body repair services. Many lenders do not like to lend on these types of properties – especially in second position.
Our commercial hard money second allowed our clients to keep the property on the market, maintain their business and pay debts that were a priority. Maintaining the business was important to the sale, and being able to access cash while the property was on the market was a big benefit to our hard money loan. In addition, with the property being on the market our clients did not want a prepayment penalty. We were able to structure this loan with no prepayment penalty.
Typically speaking, our hard money seconds are shot term loans. Usually 12-24 months, although longer terms are possible. They are typically interest only, and we can secure most property types, with the exception of raw land, in a second position. If the loan to value is good, we can also go in third or even fourth position should the transaction require.
For more information about what we can offer, visit our main California hard money loans page. If you are in need of a hard money second or third, give us a call to discuss your scenario. You can reach us at 877 462 3422. Usually we are able to let you know if we can potentially help with a short ten minute conversation.