Cetan Funds recently funded a residential bridge loan on a development project in West Linn, Oregon. The borrower had completed a small subdivision of a property they already owned by splitting the excess land into three new lots. They had already completed the build of three new townhomes and sold one of the three. The two remaining townhomes were listed for sale and the original existing home was in the beginning stages of a remodel.
The lender who funded the project originally was wanting to be paid off and the borrower needed additional flexibility as they sold off the townhomes. They also wanted to pull-out additional cash from the equity in the property so they could complete the renovations on the original home.
Cetan Funds provided the bridge loan to payoff the original lender on the project and give additional cash-out to the borrower. Our loan also gave them the flexibility they wanted so they could sell each townhome and put more money in their pocket with each sale. This exemplifies Cetan’s commonsense approach to lending, customizing a loan to suit the situation and fill the borrower’s needs.
Loan Purpose
Cetan Funds Residential Bridge Loans are short-term loans designed to get a borrower from point A to point B as quickly and efficiently as possible. Bridge loans are ideal for investors, builders, or business owners hoping to access funds quickly. Often, a bridge loan is used in business to rapidly leverage assets by refinancing a rental property, commercial building, or multifamily apartment building.
If a residential real estate investor needs a quick closing to secure a new property, they can use a residential real estate bridge loan for the acquisition and rapidly refinance into a more permanent loan afterward. If a business owner or real estate investor needs cash for their business for a short period of time or needs to quickly refinance their existing debt, they can quickly leverage their real estate to “bridge the gap.”
Location
West Linn, Clackamas County, Oregon
Loan Terms
$1,274,000 at 11.5% for 6 months
