Property One – Laguna Hills	Property Two – San Clemente
Loan Type: Mid-Construction Rate & Term Refi Loan Amount: $2,679,000 Rehab Budget: $914,000 Account Executive: Eli Smushkovich	Loan Type: Bridge to Sell – Rate & Term Refi Loan Amount: $2,714,000 LTV: 75% Account Executive: Eli Smushkovich

 

 

Loan maturities can put a lot of pressure on a real estate investor’s business. As we all know in real estate, things don’t always go as planned. Timelines get pushed back, budgets increase, properties don’t sell on time, and so much more.

One of our Broker’s clients was in quite the pinch with a large loan and reached out to him for help.

For our broker’s investor client, the bill was coming due with a loan maturity on a two-property cross he had with a different lender which was a small bank. His client was out of time — one property was on the market but not yet sold, the other was still undergoing renovations, and the lender wanted the loan paid off. Needing a financing partner who could help, they turned to CV3 for a strategic financing solution to help their client refinance and avoid partial payoffs and high fees associated.

The first property in Laguna Hills was a scrap and rebuild. Being a big project, it had some timeline setbacks. Property two in San Clemente was completed and listed on the market but had yet to be sold.

Our creative financing solution to help our broker support their client was to execute two individual loans while closing simultaneously. This would provide the borrower with the funds they need to pay off the maturing loan with their initial lender while also allowing us to maneuver a mid-construction loan with a large renovation budget.

Since the first property in Laguna Hills was mid-construction, the client needed a lender comfortable stepping into a complex project. We provided the borrower with a Rate & Term refi at 75% LTV along with 100% financing on the final rehab budget. The total loan was $2,714,000 with $1.8M on the initial advance and 914k as the renovation holdback — a renovation budget high enough that a lot of lenders would typically pass on.

Financing for the San Clemente was done at 75% of list price as a Rate & Term Refi with a few months of interest reserves for a total loan amount of $2,679,000. The interest reserves were of huge benefit to our broker’s client since the property had not yet been sold so no money was coming in for them. Doing this allows the borrower time to get the property sold and avoid the stress of large interest-only payments in the first few months.

At CV3 Financial Services, we take pride in executing more intricate transactions, and we’re grateful for the trust our clients place in us. We’re always here to deliver tailored financing solutions to meet your unique needs.