LFB was engaged to source bridge financing on a single family, non-owner-occupied property in the Bel Air neighborhood of Los Angeles, CA. The borrower is an entrepreneur who experienced some delays launching his new company due to the pandemic. This delay caused a financial hardship and the borrower fell behind on their mortgage resulting in the lender filing a notice of default.
LFB successfully arranged a $5,850,000 bridge loan to pay off the current lender and provide enough runway for the borrower to make property improvements before listing the home for sale. The loan amount was 65% of the appraised value and included a 12-month interest reserve with only a 120-day yield maintenance period. The short minimum interest period provided enough flexibility for the borrower to pay the loan off prior to maturity without being subject to an expensive prepayment penalty. The borrower intends on selling the property in the next 6-12 months and retiring the loan.
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