Toluca Lake, California Funded Loan
Property Type: Condominium
Lien Position: 1st Trust Deed
Loan Amount: $60,000.00
Appraised Value: $400,000.00
Loan Rate: 9%
Loan Type: Investment Purpose
Occupancy: Non-Owner Occupancy
Term: “24” Months Interest Only
Toluca Lake, California – Our client, purchased the Subject Property in 2015. Several months after purchasing the Subject Property he paid off in full the loan that financed the purchase of the Subject Property. He has invested $675,000.00 in cash into the Subject Property just based on the purchase price only, not to mention any additional funds he has invested since purchasing the property.
The Subject Property is currently Free & Clear. Toluca Lake, California
The “2” separate properties, each have their own APN Number, but are joined together due to a Recorded 1962 Covenant and further due to the “Smaller Lot” having a Lot Size of 15,000 Square Feet rather than the required 17,000 Square Feet that is required in the area.
Our client intends to use the funds from the loan to prepare and present the necessary Civil Engineering Reports required by the City of Los Angeles to move the current Lot Line separating the “2” properties approximately “10” feet to the west providing the additional 2,000 square feet to the smaller lot. Upon approval from the City of Los Angeles, the Covenant will be dissolved and the “2” lots can be finance or sold individually. It has been indicated by the City of Los Angeles that the process will take from 6 to 9 months to obtain final city approval.
The borrower intends to use the additional funds from the loan to upgrade the Small House in preparation for possible sale within a year or two in the future.
We believe that the loan has many strong points. The LTV for the loan is only 18%. The Borrower has good credit. The property is located in a good area. The property is Free & Clear. The property is well cared for and is in very good condition. The Trust Deed Investment has a good rate of return with very little risk. Toluca Lake, California
The plan of payback is to either refinance the loan prior to its maturity date or to sell the smaller house property and pay the loan off.