Interest Only Private Money in Los Angeles

8 Replies

Hello I’m looking for a private lender who can do I interest only loan in Los Angeles.

I’m looking to hold for 1-2 years and pay interest only.

The property is in excellent condition and our credit is excellent: 750+

Do you know someone who can help?

Originally posted by @JJ Espinoza :

Hello I’m looking for a private lender who can do I interest only loan in Los Angeles.

I’m looking to hold for 1-2 years and pay interest only.

The property is in excellent condition and our credit is excellent: 750+

Do you know someone who can help?

 Sometimes we focus on a little thing and it prevents us from being open to many more options.

You mention interest only multiple times, yet an amortizing loan is generally not much more in PI.

For the benefit of others, how much will you be putting into this? What LTV? 1st position?

Hi JJ, interest only private money products can be found, but you may have to do a bit of digging. I'd start with companies like Conventus, Civic and CoreVest, and see if they can help. Otherwise, connecting with a mortgage broker may help. Some of them know private individuals looking  earn a yield on money, who may be open to this.

@Steve Vaughan Loan to Value is 82%, I’ve ran the numbers and interest only is the way that this property will cashflow for the next year or two.

I’m personally living in the home, but plan on moving out and renting it for a couple of years and then selling it.

@JJ Espinoza ...why do you need a private money loan? I'm trying to understand the situation. If you're living there, that rules out most lenders and the leverage point is way too high at 82%. How soon are you moving out? Are you moving out of area? Maybe you need to refinance using a alternative type loan that's I/O so you do cash flow, but your equity position is still going to likely be a kicker for most lenders. You'll need to come in with $$ or pay it down.

@Jared Rine I plan on moving out and using the property as a rental, once things get back to normal in the world, maybe November?

I can come out of pocket to put more equity in the property, no problem, especially if that helps with getting a loan with a very low payment. I just don’t want to put ok much capital into the deal as I want to invest it elsewhere.

Hope this clarifies a bit


@JJ Espinoza if you have income to go with your good credit, could you get a first lien line of credit (sometimes available up to 90% on primary homes)? The line would likely be interest-only for the first 5-10 years, which covers your time horizon, and would very likely come in quite a bit lower than a HML. 4% for primary homes is not uncommon; sometimes it's even less. You don't say whether you have a mortgage, but you could have an initial draw from the line that pays off that mortgage. Dial until you find what you're looking for.

@JJ Espinoza ..feel free to keep my info and/or PM. I don't know if things are going to get normal by then, but what my recommend would be to refinance it into an low interest I/O loan (which is possible, depending, but from the sounds of it, it should be given what you've said so far) before you move out, and then do what you planned. And then no one cares and you can do what you want with your property.