© copyright 2024, All California Lending. All right reserved
Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
© copyright 2024, All California Lending. All right reserved
Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
This is a recently funded Pebble Beach hard money rehab loan for one of our long term clients. The borrower has years of construction experience and has completed major projects in the past. This project includes the addition of almost 1300 square feet, and a big strength of the file is the experience brought to the table.
The property is located in a highly desirable area of Pebble Beach and sits on a lot of almost 10,000 square feet. Once completed, the property will be just under 3,000 square feet with modern upgrades throughout.
The property is currently in need of rennovations to bring it’s dated finishes up to par with other properties in the area. The kitchen will be enlarged, a bedroom and bathroom will be added and a new walkway will be constructed, giving the finished property great curb appeal.
The cost of the rennovations on this transaction is just over $450,000, while the purchase price is just under $700,000. The estimated as complete value of the property is just under $2,000,000, creating a large profit potential on this transaction.
Due to this large profit potential, our history with the borrower and his experience in construction, we were able to not only help fund a rehab loan based on 65% of the ARV, but also we were able to help with equity funding, allowing this transaction to close with minimal cash in from our client. While going this direction means giving participation to the equity investor, the benefits of not having to use existing cash on hand often outweigh the costs for those looking to leverage their time and/or existing resources to do multiple projects at one time.
In general, our rehab hard money loans will go up to 65% of the after repair value, or ARV. We can also work with construction completion projects and even ground up deals if the numbers work. For those with experience and deals with excellent profit potential, we can also assist our clients in obtaining an equity or gap funder to work with them. Read more about our hard money rehab loans, or give us a call today to discuss your particular scenario at 877 462 3422.
