When the Borrower contacted our company, he owned two 4-Plexes in Studio City, California and had a total of “8” loans and liens recorded against the two properties. He had indicated that if he couldn’t “Clean Up” his financial situation he would have to sell one or possibly both of his properties, which he didn’t want to have to do.
Our BPO value of $1,300,000.00 is a very conservative value. Due to the property’s outstanding condition and substantial interior upgrades the property is most likely worth even more than our value.
An impediment to funding the loan was that the Borrower had dedicated more than half of the units as Vacation Rentals, where he didn’t receive traditional rental income. After over “2” months of diligent effort we were able to arrange a new 2nd Trust Deed for $260,000.00 that provided the funds to pay off most of the loans that the Borrower owed. The monthly savings to him was over $2,500.00 per month, suffice to say he was very happy he contacted our company for the loan we got him in Studio City, California.
The combined PITI (Principal, Interest, Taxes & Insurance) for the property will be: $7,501.00. The only other monthly expenses are utilities, gardener and any Repairs & Maintenance if necessary. The property will generate far more in income each month than expenses. The building has strong cash flow.