Private Money Loans for Bulk REO Investors
Private fund offering a great line of credit financing solution for investors who purchase bulk REO portfolios in California. Lender has done many REO finance transactions and is looking to do a lot more, for both residential and commercial properties throughout California.
Initial Advance: up to 60% of Borrower's purchase price
Credit Line Amount: $500,000 to $10,000,000, not to exceed $1,000,000 over the Initial Advance
Loan Term: 12 months (extension possible, see details below)
Interest Rate: 8.90%
All loans will be 1st trust deeds.
No "Proof of Funds" provided. Borrower must supply lender with a list of properties prior to loan consideration.
| Maximum Loan to Cost: | Up to 60% for coastal counties and single family residences Up to 50% for non-coastal counties and condominium units |
| Initial Monthly Payments: | Interest only on Disbursed Funds for the first 90 days. After 90 days, interest shall be payable on the Credit Line Amount, unless adjusted as provided below. |
| Maximum Loan Adjustments: | After 90 days, Borrower may reduce the Credit Line Amount, and interest shall be payable on the new Credit Line Amount. At any time thereafter, Borrower may further decrease or increase said amount up to the Initial Credit Line Amount. Increases require 60 days notice. |
| Origination Fees: | 3.0 points to lender |
| Initial Site Inspection Fee: | $250 per property for Los Angeles County and Orange County $350 per property for all other counties Site Inspection Fee is payable prior to site visit |
| Option to Extend: | Two 6-months extensions for 1.0 point each of the Outstanding Principal Balance, payable to lender - First 6-month extension at 9.30% - Second 6-month extension at WSJ Prime + 6.00%, not less than 9.60% At such time Option to Extend is exercised, the Outstanding Principal Balance shall become the new Credit Line Amount. |
| Partial Reconveyance: | Release prices shall be equal to the loan amount for each property |
| Additional Properties: | After the Initial Advance, additional houses will be funded under separate Notes and Deeds of Trust, up to the Credit Line Amount. Each additional advance must be a minimum of $250,000 for credit lines below $1,000,000, and a minimum of $500,000 for credit lines above $1,000,000. Loan allocation on each house must not exceed $400,000. Borrower shall pay a $350 Processing/Site Inspection fee for each additional property. |
| Prepayment Penalty: | None |
| Junk Fees: | None - Borrower pays all 3rd party fees including title and escrow |
| Closing Date: | Within 5 days from receipt of full package |
See other CA Private Money Loan Programs
Company: Lone Oak Fund
Disclaimer: all information herein is believed to be correct, but we do not guarantee its accuracy and rely on prospects to rely only on their own investigations.
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