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

$71,000 2nd TD @ 9.50%, 70.00% CLTV, Cash Out, 6 mo. Guar Int., 24 mos. term, Baldwin Park, CA