Reprop Financial launched a program back in May allowing commercial owners to release equity in their coastal properties. "Our Best for Your Best" is a program designed to give commercial loans up to $1 million at rates of just 5.99% for the first year.
All applicants have to do to qualify for this three-year loan is to offer their best coastal properties. The rate is incredibly low for private money loans, also called hard money. This offer is only available for a limited time, and is open to owners of the best coastal properties in Los Angeles, San Diego, Ventura, South Santa Barbara, South Sonoma County and Marin. It is also available to metro areas of Seattle, and metro areas of Portland. It applies to Class A properties in the commercial and non-owner occupied residential properties as well as retail, office, mixed-use and multifamily properties.
Glenn Goldan, founder and CEO of Reprop Financial has pointed out that quite a few people have recently purchased coastal real estate from banks or as short sales. Property values are beginning to move upwards in these areas, and this program enables owners to unlock up to 50% of their assets value. This would allow them to reinvest that capital into other commercial real estate. Goldan said "That's a good thing for California and it's a good thing for the economy."
The interest rates are 5.99% for year one, and 6.9% in years two and three. There is also an optional ability to roll the loan into a 15 year fully amortized loan. The program has been very well received since it was launched in early May and has already benefited owners of smaller commercial properties who were previously unable to find reasonably priced loans.
Reprop Financial is located in Humboldt County and also offers other loan programs in Northern California. These include small business loans in coordination with the Small Business Administration. Local clients such as Goodman Winery and Arcata Theatre Lounge have taken advantage of these loans in order to grow their business.