Borrower is retired, lived in Greenbrae, CA and owned his $1,500,000 home free and clear. He inquired about a bridge loan to help him purchase a smaller home out of state to be closer to his kids. We funded the new purchase of $660,000 with no down payment and closed in 2 weeks.
Having access to freely spendable cash without restrictions is what every real estate investor needs in their arsenal whether it's for purchasing investment properties, rehabbing properties, paying off balloon notes, or purchasing raw land; it's clearly a smart choice. And that is what one of our investor borrowers came for us for! Our borrower who owns $12,000,000 in Silicon Valley homes applied for a $5,000,000 credit line and we funded and closed in 2 weeks with no minimum draw requirements.
Borrower outgrown their $3,200,000 home in Cupertino, CA and needing to purchase and enroll his kids into a new school district in Los Altos, CA. He has over $800K vested in Apple stock but did not want to liquidate it short term for a down payment and pay capital gains tax. He inquired about the bridge since he has substantial amount of equity in his Cupertino home. The sellers accepted his non-contingent offer at the list price of $4,000,000 and we funded and closed in 2 weeks.
Lending in a "reverse" 1031 exchange where it allows an investor to acquire a new property today, when an excellent investment may be available, and sell later when a better price might be obtained is what we do here at Stonecrest Financial. In order for the investor to defer capital gains through a "reverse" 1031 exchange, they must close in the exchange company's LLC temporary before it is transferred into the borrower's name. We just funded and close a reverse transaction in 2 weeks where the investor purchased a replacement property in Marin County for $1,150,000 with no contingencies before selling the $1,600,000 relinquished property in Venice with a basis of $400,000.
Estate loans, which are also known as inheritance loans, probate loans or trust loans, are short-term loans against real estate assets within an estate which are currently illiquid. The estate may be going through the probate or trust administration process or the heirs of the inheritance may wish to quickly divide their ownership of property within the estate. Borrowers inherited a $5,000,000 home in Palo Alto, owned free and clear, from their passing mother. It is to be split equally between 5 children. We did a cash out refinance of $3,000,000 to pay out two of the five children and closed in 2 weeks.
Whether you invest in single family homes, commercial real estate, apartments, etc., this access to free spendable cash can be extremely useful. And that is what one of our investor borrowers came for us for! Our borrower who has been investing in real estate over the last 20 years in San Diego owns $25,000,000 in properties. He applied for a $3,000,000 credit line for his unlimited use in real estate opportunities and we funded and closed in 2 weeks.