Funding Purpose
Tauro Capital Advisors was engaged to place permanent debt on a multifamily property in Long Beach, CA.
Property Description
The multifamily property consistent of 6 units, and it was recently purchased in 2019 with over $300,000 in capital expenditures put in. It’s right off Alamitos Beach.
Sponsors
The sponsor has five years of experience with multifamily properties in the area. He buys properties to fix and flip, buy and hold, and conduct short term rentals out of.
Challenges
- Property was 50% vacant during the debt placing period.
Solutions
- Funding secured with California based credit union offering good terms based on relation with Tauro even during uncertain times.
Funding
- Loan Amount (LTV): 70%
- Interest Rate: 4%
- Amortization: 20 years
- Term: 5 years
- Recourse: Non Recourse
- Prepayment: No penalty
