Successful Fix & Flip Business Owner and Real Estate Investor sought a short-term business purpose cash-out 2nd TD on this mixed-use property in Whittier, Los Angeles County, CA. The borrower purchased the property a year ago and has since done a complete remodel of the two upstairs residential units. One unit has just been leased out while the other should be leased next month. The rehab on the commercial units are being finished up. Upon completion, one commercial unit will be a ‘Palm Springs-themed Day Spa that our borrower will own and operate herself. The other unit will be rented out. A portion of our loan proceeds will go towards buying equipment/supplies for the Day Spa and finishing up the rehab on the commercial units, while the rest of the loan proceeds will go towards cosmetic upgrades to three of her rental properties in Palm Springs to maximize rental income. She estimates the Day Spa will be completed in 3 months at which time, she will refinance the entire property to get out of our loan and the 1st TD (which is current and in good standing). The 1st is with Val-Chris Investments, which is current and in good standing, has a balance of $630,000 @10.75%, and a total monthly payment of $5,643.75. There is currently a 2nd TD of $275,000 and a 3rd TD of $250,000 which are also in good standing, but these will be subordinated behind our loan. The borrower owns three other rental properties and is the owner of Violet Moran’s Revive Team, LLC., which focuses on Fix & Flips throughout Southern California. The business bank statements reflect an average deposit of $270,000/month over the past four months (March, April, May and June all in the file).
The Subject is located at 6512 Bright Avenue within the City of Whittier, CA. The Subject site totals 0.13 Acres, or 5,508 square feet, and is located on a street that offers 2 asphalt-paved lanes. The site is basically rectangular in shape and fully level at street grade. The subject building is configured to house two commercial units and two residential units within 2 buildings. The building that faces Bright Avenue offers 2 ground floor commercial units that each offer a restroom and a retail/commercial area, and a second floor 3-Bedroom/2-Bathroom unit that has been extensively renovated. Situated behind the mixed-use building is a 2 story structure that offers alley access with 3 garage parking spaces on the first floor and a 1-Bedroom/1-Bathroom unit on the second floor. The Net Rentable square footage of the building is 4,880. Total expected rental income for all units is $26,900/month.
What we like about this Trust Deed opportunity:
- Successful Business Owner and Experienced Real Estate Investor
- Los Angeles County Location
- 15.50% Annualized Return
- 12 month term
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
- Borrower planning on refinancing out of our loan in 3-6 months
$390,000 2nd TD @ 15.00%, 60.00% LTV, Cash Out., Mixed Use, $39,000, Min Inv., Whittier, CA
