Bridge Loan
Bridge Loan for SFR Rehab Project in South Chesterfield, Virginia
- Loan Amount
- $195,000
- Loan-to-Value
- 60%
- Interest-Only Term
- 12 Months
- Private Loan Type
- Bridge Loan
- Approx. Funding Date
- November 25, 2024
- Property Type
- Single Family Residence
Deal Summary
Myers Capital Hawaii, a mortgage banking company and direct private lender, funded a $195,000 first-lien position equity cash-out bridge loan for a single-family home in South Chesterfield, VA. The loan-to-value ratio was 60%, based on an estimated property value of $325,000. The Borrower, an experienced real estate investor with a diverse property portfolio, initially acquired and rehabbed the property using personal funds. This loan allowed them to cash out equity, reclaiming their capital to pursue future property acquisitions. Looking ahead, the Borrower plans to refinance the bridge loan into a long-term rental loan to support their investment goals. The subject property was in good condition. It is approximately 1,773 square feet set in a 30,056-square-foot lot. The Borrower had good credit. They plan to refinance the property upon completion of the rehab. The interest rate was 13.5% and the loan term was set at 12 months. The deal was brought to us by a broker who earned a $5,850 commission. This bridge loan was funded in November 2024.
Deal Highlights
- Borrower cashed out equity from a single-family property in South Chesterfield, Virginia.
- They reclaimed personal funds used for the property’s acquisition and renovation.
- Borrower plans to reinvest the reclaimed capital into additional real estate acquisitions.
- Exit Strategy: Refinance the bridge loan into a Debt Service Coverage Ratio (DSCR) loan.
Property & Loan Details
- Property City
- South Chesterfield
- Property State
- VA
- Loan Term (months)
- 12
- Lien Type
- 1st Mortgage
- Payment Type
- Interest Only
- Property Value
- $325,000
- Location Type
- Rural
- Property Condition
- Good
- Building Square Footage
- 1,773
- Lot Square Footage
- 30,056
- Lot Acreage
- 0.69
- Borrower's Plan
- Rehab and Rent
- Exit Strategy
- Refinance
- Borrower Credit Rating
- Good
- Interest Rate
- 13.5%
- Broker Commission
- $5,850
Loan Originator
Reed Myers
Principal
Reed is also Principal of Myers Capital, an award-winning, privately-owned residential and commercial mortgage banking company and direct private lender based in Honolulu, Hawaii. As a second-generation family business owner, Reed is personally involved in over $2 billion in loan originations, helping thousands of clients throughout the country. He holds active mortgage loan origination licenses in Hawaii and multiple states. He is also an experienced real estate investor throughout Hawaii and the mainland. Myers Capital provides efficient mortgage lending and real estate advisory services in 42 states.
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