Property Type: Single Family Residence (Operated as a School)
Lien Position: 2nd Trust Deed
Loan Amount: $270,000.00
First Trust Deed: $923,000.00
Appraised Value: $2,100,000.00
Loan Rate: 10.5%
Loan Type: Investment Purpose
Occupancy: Non-Owner Occupancy
Term: “24” Months Interest Only
Piedmont, California – This loan transaction was quite unusual for us, since one of our company’s Investor already held a $923,000.00 1st Trust Deed Loan on the Subject Property, and where the Borrower had contacted him to inquire if he would be interested in funding a $270,000.00 2nd Trust Deed Loan.
Our Investor approached us with the Borrower and the proposed $270,000.00 2nd Trust Deed Loan, and requested for us to act as the Mortgage Broker for the transaction, which included requesting and obtaining all required information and documentation from the Borrower, and further preparing the Loan Documents and to take all “Other” necessary actions to finalize the closing of the proposed $270,000.00 2nd Trust Deed Loan.
Our company had no previous interactions with the Borrower prior to our Investor requesting our company’s assistance.
The Subject Property was a very nice and large single family residence which was located in a desirable upscale neighborhood of Piedmont California, and was currently being operated as a school location. The Borrower was a Partner with other family members in the ownership of a Spanish Emersion School where they had “6” other locations in addition to the Subject Property location.
The funds that the Borrower was looking to obtain was not for the Subject Property, but was intended to be used to make necessary repairs and upgrades to another school location. Piedmont, California.
The Borrower had great credit and income, but due to the Subject Property having a school being operated from the property, he was not able to obtain a loan from any of the big banks, since they don’t lend on such situations. In addition since the Borrower was looking to obtain a 2nd Trust Deed Loan this also eliminated all the Institutional Non-Prime and Sub-Prime lenders, as they only fund 1st Trust Deed Loans, so the only option available for the Borrower was to obtain the requested funds with a Private Money Loan.
We were able to complete the closing of the $270,000.00 2nd Trust Deed Loan in less than “10” days, and both the Borrower and our Investor were very happy with our company’s services.