Archive for June, 2018


Friday, June 29th, 2018

Recently we funded a 4 year loan for a customer on 9 units in W. Hollywood. Rent control in W. Hollywood is very restrictive, the apartment units are not de-controlled upon a tenant moving out. Rents remain very low, affordable for tenants, not-so beneficial to owners who pay high prices. There is a provision if the owner spends a certain amount of money in upgrades, also applies through the proper procedures that the rent can be raised beyond the standard 3% annual increase. Our borrowers sat down with us and outlined their plan regarding the property, having a desire to substantially upgrade and improve each unit. Regardless if their request is granted by the rent control board, we saw the dedication of the borrower with their willingness to put substantial money into the building. We made a loan larger than other lenders would and closed very quickly, only 10 days.