The borrower had paid cash less than three weeks earlier for this beachfront investment property. The intent from the onset had been to leverage the acquisition, but time and circumstances dictated otherwise. The return of their liquidity was necessary for immediate business purposes, so the loan request required a high degree of responsiveness and immediate deal certainty. Seattle Funding Group of California’s quick cash-out refinance allowed the owner to recover a significant portion of their investment.
While rather straightforward in concept at less than 50% LTV, the sponsor, an international investor, was traveling between Europe and the Middle East as the purchase closed and the loan transaction was pending. The required underwriting information was quickly supplied by the referring broker, the due diligence performed and deal certainty provided within a day; it then came down to communication, details and logistics with a sponsor eleven time zones and half a world away.
Purchased as a high-end vacation rental, the property enjoys a terrific location, direct beach access and expansive views. Malibu has always been a rather unusual and non-linear market when it comes to values, so great care was taken to underwrite the value and risks associated with the bluff-front location, as well as the viability of the high-end rental strategy.
Special thanks to Mickey Hedges of Coldwell Banker Previews for providing reams of sales comps and for assisting in the value confirmation process. Thanks also to the referring broker. It was his first transaction with SFG of CA, and his professionalism, focus and commitment to the challenge resulted in a quick score and a terrific addition to SFG’s portfolio of “A” paper bridge loans.
