Objective
An experienced developer of high-end homes in the Bay Area needed to refinance his existing private money first mortgage and secure additional funds to complete a property remodel.
Challenge
The primary challenge was to refinance the due private money first mortgage quickly while obtaining sufficient funds for construction and setting up an interest reserve.
Solution
Saxe Mortgage, a trusted private money lender, provided a tailored private money loan solution. They refinanced the first mortgage with a new first mortgage for $2.2 million within three weeks. The loan proceeds were used to pay off the existing mortgage, fund the remaining construction, and establish a 12-month interest reserve.
Outcome
- Quick Refinance: The developer was able to refinance the existing private money first mortgage swiftly, avoiding any potential financial penalties or delays.
- Access to Capital: The $2.2 million private money loan provided the necessary funds to complete the property remodel.
- Interest Reserve: Establishing a 12-month interest reserve ensured financial stability and gave the developer adequate time to finish the project and sell the property.
Conclusion
This strategic private money financing approach facilitated the developer’s project completion and financial stability. Saxe Mortgage demonstrated their expertise in providing private money loans for real estate by offering a solution that addressed the developer’s immediate refinancing needs and future project requirements.
By leveraging private money loans with competitive private money loan rates, Saxe Mortgage enabled the developer to proceed with confidence, knowing that the funds were secured to complete the high-end home remodel and prepare for a successful sale.
This case highlights the importance of private money lenders like Saxe Mortgage in supporting real estate developers with flexible and efficient financial solutions, ensuring the seamless execution of high-value projects.