Crescent Lenders Funds $3 Million Dollar North Hollywood Apartment Complex
Industry: Financial Services
Crescent Lenders, a hard money lending company based out of Los Angeles, California, recently funded the refinancing of an apartment complex in North Hollywood.
Los Angeles, California (PRUnderground) January 19th, 2021
The subject property/collateral is a 15 unit multi-family building located in North Hollywood with an estimated value over $3.0 million dollars.
Each unit is over 1,000 square feet and has 2 bedrooms and 2 bathrooms.
Given the size of the units and the strength of the North Hollywood multi-family real estate market over the past decade, our conservative valuation of the property worked out to $200,000 dollars per unit.
The $1.625 million dollar private money loan was used to refinance out of an existing $1.5 million dollar bridge loan.
The loan to value ratio for this 1st trust deed Investment works out to a conservative 55%.
Crescent Lenders took the 1st lien position at 9.50% interest only with a term of 24 months and a prepayment penalty of 4 months.
This low loan to value ratio combined with a high net worth experienced real estate investor (primarily centered around real estate), makes this an attractive deal for Crescent Lenders.
Crescent Lenders has provided several bridge loans to this borrower over the past 8 years with tremendous success in the North Hollywood area.
Click here to learn more about their Los Angeles lending programs.
About North Hollywood
North Hollywood is located in the San Fernando Valley in the City of Los Angeles.
This area is a great market for investors due to the fact that renters occupy over 75% of all available housing.
According to movoto.com the median home listing price is $747,000 dollars with a median cost per square foot at $463 dollars.
This has been a hot bed for buy and hold investors looking for passive income.
North Hollywood is safer than most other neighborhoods in Los Angeles County and boasts a crime rate less than 2% the national average.
Fun Fact:
The house that was used for exterior shots for the famous Brady Bunch house is located in North Hollywood.
About Refinance Loans
Refinancing a hard money loan is an effective way for real estate investors to buy more time when things don’t go exactly as planned.
For example, real estate investors can refinance their original hard money loan if their renovation or project goes over budget or is incomplete.
It’s important for borrowers to pay their lenders when their note is due, otherwise the borrower may fall subject to paying an expensive default rate which can often times be a hefty 20%.
Another scenario could be if a project is completed but the property is sitting on the market with higher equity due to the renovations.
A refinance allows the borrower to tap this equity for another project.
About Crescent Lenders
Crescent Lenders is a direct private money lender located in Los Angeles, California.
They service real estate investors with timely loans when they need them most all across the golden state.
CEO and Chief Underwriter Mario Padilla has funded over $150 Million in private money loans for real estate investors since 2011 across the Golden State.
If you are a real estate investor or fix and flipper looking for a private money loan in the California region, you can contact them on their website or at 213-474-3131.
