Cross-Collateralization of Commercial Building and SFR
Lone Oak Fund, LLC just funded a $1,650,000 bridge loan, cross-collateralizing a commercial Building in Santa Ana and a high-end, 3,200 square foot rental home in Santa Ynez. Borrower obtained more than 100% financing for the acquisition of the Santa Ana property by crossing the Santa Ynez rental. The 18 month loan was priced at 8.60% for the first 12 months and 8.90% for the last 6, with an origination fee of 2.50 points. Additionally, borrower was given a 6 month extension option at 8.90% and 1 point.
Borrower will use the funds to acquire the Santa Ana commercial property and build it out, as well as for tenant improvements. Borrower plans to obtain conventional financing or an SBA loan once the Santa Ana property is completed.
The borrower was introduced to Lone Oak through his mortgage broker. The broker earned $33,000 on the transaction.