Borrowers sought a business purpose cash-out 2nd TD which will be used to finish construction on an ADU in the back of the property.
The subject property is a traditional 1,236 SF that sits on a huge 10,202 SF lot. It consists of 7 total rooms including 3 bedrooms, 2 bathrooms and a covered front patio. In the back of the property, construction has begun on a 1,120 SF ADU which when completed, will consist of 3 bedrooms, 2 bathrooms and a 3-car garage. It will also have a covered patio and covered porch. The entire property sits in a nice suburban area of Baldwin Park that is situated near restaurants, schools, shopping medical facilities and golf courses. The exit strategy from our loan is a conventional refinance once construction is complete.
What we like about this Trust Deed opportunity:
- 70.00% CLTV and 67.73% Net CLTV
- 9.50% annualized return
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
- Construction is already underway and just needs to be finished
- $30,000 Funds Control
- Family Property for both units