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Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
We are able to assist with hard money land loans throughout the state of California. This recent funding of a Sherman Oaks hard money land loan was able to payoff the existing debt, as well as pull cash out for soft costs.
This client came to us with a piece of land in Sherman Oaks that he intends to develop. He had substantially paid down the original loan on the property, and requested funds to pay that loan off in full, as well as take cash out to move forward with development of the property. This parcel was a little challenging due to the slope. The client had a soils and geology report showing the requirements to build, and the end investor was satisfied that the lot was, in fact, buildable.
The borrower needed to do a number of things to ready this parcel for construction. Additional slope analysis were required, as well as various other reports. He needed to engage an engineer, get pre-grading inspections done and pay for permitting, including grading permit.
It was important to our client that these funds not be fund controlled. In this manner, he could manage the project and move it forward as quickly as possible. Additionally, much of the cost to be incurred was for reports and upfront costs for work to be performed. We were able to structure this loan as a straight cash out land loan, allowing the borrower to receive all requested funds as cash in hand at closing. This Sherman Oaks hard money land loan is very representative of what we are able to assist with.
We are able to help with many different hard money land loans throughout California. Typically we will require an appraisal. The maximum loan to value ratio is typically 50% of current value for unimproved land. If the land has structures or other improvements, however, we may be able to secure more funding. In addition, for land that is ready for construction, we are able to help using the completed value. In this circumstance, there is typically going to be a fund control set up for the work to be done.
We can help with hard money land loans for purchase as well as for refinance. Cash out, rate and term or funds for development. We can also cross collateralize other property to increase the funding amount. If you are in search of a California hard money land loan, give us a call today at 877 462 3422 – or visit our California hard money land loans page. We would be happy to discuss your options and how we may be able to assist you!