Whittier, California Funded Bad Credit Loan
Property Type: Commercial Banquet Hall & Small Commercial Office Building
Lien Position: 2nd Trust Deed
Loan Amount: $200,000.00
Appraised Value: $900,000.00
Loan Rate: 12%
Loan Type: Buusiness Purpose
Occupancy: Non-Owner Occupancy
Term: “24” Months Interest Only
Whittier, California – Our client their Son, who has Power of Attorney over their affairs is looking to obtain a new first trust deed for $450,000.00 on the Banquet Hall and their additional commercial property located across the street.
Our BPO value for the combined properties is $800,000.00, and is based on the estimated appraised value as per our appraiser. We received the completed appraisals from the appraiser total payoff for both the current 1st & 2nd Trust deeds is approximately $350,000.00 which includes pre-payment amounts for both loans in Whittier, California.
The Banquet Hall has been in the Family since 1970 and they have run the property as a Banquet Hall ever since first purchasing the property.
The Family have owned the Banquet Hall for 45 years.
The Borrower has run the business for decades and has recently contracted Dementia. Their Son has now taken over the day to day operation of the Banquet Hall and The Banquet Servicing business.
As part of the turnaround of the business, the Son has increased both the hall rental and Banquet services rental prices, so the business will be profitable going forward. The Son was not charging enough in rental prices to even cover the costs of the both the building and the Banquet Services business. Last year the Banquet Hall grossed approximately $300,000.00, and due to the increase in rental prices anticipates grossing $400,000.00 over the next “12”-month period.
Currently the Banquet Hall is reserved for both Friday and Saturday nights for many months into the future. The Banquet Hall is well known in the Whittier area and has a loyal following from the community for Weddings, Bar-Mitzvahs, Memorials and Corporate Business events.
Having strong cash flow going forward that made the Trust Deed Investment a good investment for our Investor who funded to the loan for our Borrower.