Recently Closed Loan | $2,500,000 Cash-Out Refinance Private Money Loan at a 7% Fixed Rate for a Luxury Single Family Fix and Flip Property

At George Smith Partners, I recently arranged a $2,500,000 cash-out refinance loan at a 7% fixed on a free and clear luxury 7,200 square foot single family residence located in Laguna Beach, California. The sponsor recently purchased the property for $3,465,000 all-cash at an auction and sought a cash-out refinance loan to close on another acquisition opportunity, but was sensitive to pricing and terms. GSP identified a specialty lender that could lend aggressively on the asset and close quickly. Sized to 72.5% of purchase price and 65% of as-complete value, the 9-month loan is interest only with no prepayment penalty or yield maintenance.

GSP identified a lender that understood the submarket and that the sponsor was experienced enough to rehabilitate the property in a timely fashion to either sell or lease as a rental. GSP underscored the sponsor’s track record and significant remaining equity in the property after the cash-out at closing. This ultimately allowed the lender to get comfortable with the significant cash out and to not require an interest reserve, even though the property has no cash flow. The lender allowed the sponsor to fund an estimated $125,000 in repairs out-of-pocket versus a hold back due to the sponsor’s financial strength and track record of execution. The loan funded in 5 business days with an exceptionally low rate and lender fee for quick close private money execution.

For more information, please contact:

Zachary D. Streit, J.D., M.S. Vice President | George Smith Partners [email protected] | Direct: 310-867-2936 | Mobile: 310-709-5320 BRE License No: 01905977

ABOUT GEORGE SMITH PARTNERS

Founded in Los Angeles, in 1992, George Smith Partners, Inc. (“GSP”) is a leading, national real estate investment banking firm. Our diverse and innovative structuring expertise, vast lender knowledge and relationships, and everyday market experience, enable us to customize financing for commercial property ranging from $3,000,000 to $350,000,000 including highly leveraged participating debt and joint venture equity.

10250 Constellation Boulevard, Suite 2700 | Los Angeles, CA 90067