Crescent Lenders, a hard money lender based in Los Angeles, has successfully funded a bridge loan of $2.1 million to facilitate the acquisition of a 12-unit multifamily rental property in Oxnard, California. The property was purchased for $2.805 million, with the borrower contributing $705,000 in cash and cross-collateralizing two additional properties, achieving a loan-to-value ratio of 75%. This financing strategy allowed the borrower to make a competitive all-cash offer, successfully outbidding other potential buyers.
Loan Details and Investment Strategy
The bridge loan carries an interest rate of 10% and is set for a 12-month term, which includes a three-month prepayment penalty. The borrower plans to implement a “cash for keys” strategy to vacate existing tenants, enabling renovations that are expected to take between 6 to 12 months. The renovation aims to modernize the interiors, enhance curb appeal, and position the building more competitively in the Oxnard rental market.
Previously, the multifamily property generated $12,068 in monthly rental income, though the rents were significantly below the market rates for similar properties in the area. Following the renovations, the units are projected to be marketed at rental rates that could increase by 40% to 50%. This anticipated growth could raise the property’s valuation to approximately $3.2 million, providing a substantial upside for the investor and supporting the strategy to refinance into a traditional bank loan for repayment of the bridge loan.
Experienced Investors and Proven Success
The borrowers are established real estate investors based in Ventura County, with a portfolio that includes eight additional rental properties in the Oxnard region. They have successfully employed the “cash for keys” repositioning strategy in the past, yielding strong returns and improving the quality of housing in the neighborhood. Their local expertise and history of performance played a significant role in Crescent Lenders’ decision to fund this project.
Crescent Lenders has built a reputation as a reliable partner in the private lending sector. Since its inception in 2011, the company has funded over $150 million in real estate financing, specializing in residential and commercial bridge loans throughout California. The firm focuses on providing solutions for borrowers who may struggle to secure traditional bank financing, offering quick and flexible funding for time-sensitive real estate projects.
By financing this $2.1 million acquisition in Oxnard, Crescent Lenders continues to affirm its commitment to supporting investors in Ventura County and across California. For more information, visit their website at www.crescentlenders.com or contact Russell Barneson at 213-474-7980 or [email protected].
