Cypress Park, California – Our Borrower/Client, was looking to obtain a new $159,000.00 1st Trust Deed Loan on his Single-Family Residential property that is currently vacant, so he could get started with necessary work on “Another” property he owns.
The Subject Property needs a few repairs and some upgrades prior to it being leased out at a Market Rate Rental amount, which is currently estimated to be more than $2,000.00 per month. The anticipated rent will cover the monthly (PITI) Principal, Interest, Taxes & Insurance for the Subject Property. Cypress Park, California.
The borrower was referred to our company by his Nephew, who has obtained several loans from our company.
The borrower has had health problems over the last several years, that prevented him from being able to repair, and further rent out several properties he owns. Now he doing much better, and can now arrange the repairs, upgrades and leasing of the Subject Property in addition to his other Investment properties. Cypress Park, California.
The loan did provide to the borrower the funds to make repairs to comply with the City of Los Angeles Building & Safety requirements on “Other” properties, in addition to making necessary upgrades to several of his Investment properties that will allow him to obtain Market Rate Lease amounts.
We believe that the loan had many strong points. The LTV for the loan is only 65%. he Subject Property is in a good rental area. The Subject Property will benefit from repairs and upgrades. The Trust Deed Investment had a good rate of return with very little risk in Cypress Park, California.
The plan for payback of the loan is for the client to obtain an Institutional Sub-Prime 30-year loan after all his properties are repaired, upgraded and leased.