Bridge Loan – Encinitas, CA

The Opportunity

A veteran investor with hundreds of successful deals in his background was in talks to finance a large out-of-state property. He needed liquidity to take advantage of the opportunity, so he wanted to get $2M in cash out from his equity in a beachfront condo investment property in San Diego County, California.  

The investor wanted to borrow money at low leverage and avoid prepayment penalties, because he planned to repay the loan in less than a year after the large property purchase was complete. And while it was already December, he wanted to close the loan by end of year. He approached Lima One for a bridge loan on the investment property, as he had multiple times in the past. 

The Solution

Lima One closed a bridge plus loan in just three weeks to provide liquidity the investor needed for his larger transaction. The 13-month, interest-only structure of the bridge loan ensured low cost of funds and offered no prepayment penalty. The investor also got significant discounts on rate and fee based on his successful history with Lima One. And the close happened in just three weeks, meeting the investor’s desired timeline.

The result was the liquidity needed for the investor to take down the larger opportunity and continue to grow his investment portfolio. Lima One lived up to its promise of offering a solution for every strategy by understanding the investor’s needs and partnering to find the right cash-out refinance option to achieve his goals.