Our Borrower was purchasing the Subject Property for $149,000.00 in Bell Gardens, California. At the time of purchase, the Subject Property had an Appraised Value of $185,000.00. Our Borrower was putting in $43,500.00 as a down payment in addition to funds to cover all closing costs. He had the required funds to pay for all repairs and improvements.
The LTV for the loan was 57% relative to the Subject Property’s Appraised Value and 71% LTV relative to the purchase price. The repairs and improvements that our Borrower planned to make to the Subject Property would further increase its value to approximately $235,000.00, and thus lower the LTV of the proposed loan for our company’s Investor.
Our Borrower intended to invest approximately $30,000.00 in improvements and upgrades, and further was looking to sell the Subject Property for approximately $235,000.00 within a few months.
Due to our Borrower’s long history with our company and his great rehab experience, we were able to quickly fund a $105,500.00 1st Trust Deed Loan at 10.99 with a “12” month term for our Borrower in Bell Gardens, California.