Baldwin Village, California Funded Private Equity Loan
Property Type: Single Family Residence
Lien Position: 1st Trust Deed
Loan Amount: $192,000.00
Appraised Value: $415,000.00
Loan Rate: 12%
Loan Type: Investment Purpose
Occupancy: Non-Owner Occupancy
Term: “12” Months Interest Only
Baldwin Village, California – Our client, who is purchasing the Subject Property with the intention of possibly retaining it as a rental property. The client is an active real estate investor in addition to also being a real estate agent. Our company has arranged and funded many loans for the borrower over the last “6” years.
The client buys, Fixes and Flips properties……. but at times retains some of the properties he purchases as rentals. Our client purchased the Subject Property for $275,500.00. The borrower put in $82,500.00 as a down payment. He also deposited all additional necessary funds to cover closing costs. The LVT for the loan is 64% relative to the Subject Property’s Current Appraised Value. Baldwin Village, California
The borrower invested approximately $40,000.00 to $50,000.00 in improvements and upgrades. The property improvements and upgrades that the borrower had made to the property will further increase the Subject Property’s value and thus lower the LTV for the proposed loan.
While many Fix & Flip investors operate on a shoestring, the borrower is well capitalized and is very conservative and has a very focused business plan. He consistently makes a very good profit on every transaction he has been involved with over the last “6” years.
We believe that the loan for $192,000.00 had many strong points. The LTV for the loan is 64%. The Borrower has a good FICO score. The property is located in both a strong rental and sales area. The property will go through upgrades & improvements that will increase its market value. The Trust Deed Investment has a good rate of return with very little risk in Baldwin Village, California.
The plan of payback is to either sell the property or possibly to retain as a rental property in which a refinance of the loan will take place prior to the maturity of the loan.