Property Type: Single Family Residence – 60% Completed
Lien Position: 1st Trust Deed
Loan Amount: $155,000.00
Appraised Value: $258,000.00
Loan Rate: 12%
Loan Type: Investment Purpose
Occupancy: Non-Owner Occupancy
Term: “9” Months Interest Only
Val Verde, California – Our Client/Borrower, needed funds to pay off the current 1st Trust Deed lender in the amount of $100,000.00, the Beneficiary is a personal friend of the borrower and currently is in need of his funds. The additional funds are to cover the remaining future costs to be expended to finish the construction of the Subject Property in Val Verde, California.
The Subject Property was purchased as a Vacant Lot for CASH in 2016 for $26,000.00.
The borrower later obtained a $100,000.00 1st Trust Deed from a friend where all the funds were put toward both Soft and Hard Construction Costs.
As of 2018, our client had spent/Invested $181,106.60 into the Subject Property from both the $100,000.00 1st Trust Deed loan funds and out of his and his Father’s funds. He is in need of an additional $50,000.00 to fully complete the construction of the Subject Property.
All electrical and plumbing has now been installed and the Building Inspector is scheduled to sign off the work in the next several days, after which the drywall will be installed together with additional work on the Subject Property in Val Verde, California.
All kitchen and bathroom cabinets have been purchased for $3,869.73 and are scheduled to be installed following the installation of the drywall.
We believe that the loan had many strong points. The LTV for the loan is estimated to be only 41%. The Borrower has good credit. The property is located in the Santa Clarita area. The property is NEW construction and of very good quality. The Trust Deed Investment has a good rate of return with very little risk
The plan of payback is to either sell the Subject Property following the completion of all construction or a possible refinance should our Client/Borrower decide to retain the Subject Property as a rental and benefit from future increasing market values in Val Verde, California.