Our borrower was in need of a business purpose on his personal residence in Hancock Park, California. He was a long term sales executive for a large insurance company was want through restructuring that resulted in his employment terminated. He was a seasoned insurance executive and was looking to set up his own insurance agency. He determined that he needed to raise $150,000.00 as a 3rd Trust Deed on his home. Since his home was so beautiful with substantial equity and located in a very upscale area of Los Angeles we were able to arrange the funds he needs to take his business to the next level.
The borrowers are currently generating approximately $10,000.00 per month in income but after living expenses there isn’t sufficient funds to properly market from the borrower’s insurance sales business.
The reason they are requesting a 3rd Trust Deed is that paying off their low interest rate second would greatly increase their monthly mortgage payments.
The plan of payback is to sell the property next year when the borrowers plan to move out of the Los Angeles area. So it is anticipated that the loan will not stay in place for the entire term of the loan, but situation could change and the loan could remain in place until maturity. If that is the case the Borrowers would simply refinance the property and obtain a new 1st Trust Deed to pay off all mortgage.