778 FICO borrower and W2 wage earner is seeking a business purpose cash-out 2nd TD which will be used to complete the construction of an ADU in the back of his property. The ADU is fully permitted and the borrower has spent about $33,500 of his own funds on the project thus far. Our loan will help complete the project. The cost to finish is $84,650 and all of which will be going into Funds Control. The General Contractor estimates the time to complete the ADU is three months. The current 1st TD is conventional 30 year fixed with United Wholesale Mortgage has a $225,000 balance, a 3.75% rate, and is current and in good standing.
The subject property is a traditional 1,546 SF home that sits on a 6,700 SF lot. Once the ADU is complete, the home will have 9 total rooms including 4 bedrooms and 3 bathrooms. Of this, the ADU is 460 SF with its own bedroom and bathroom. The plan is to rent the ADU out for $1,400/month immediately upon completion. The entire property sits in a nice suburban area of Fontana, San Bernardino County, 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. The general contractor is confident the ADU will be completed in ~3 months.
What we like about this Trust Deed opportunity:
- 60.00% CLTV and 55.50% Net CLTV
- 11.50% annualized return
- 6 months Guaranteed Interest
- 4 months Prepaid Interest
- $84,650 Funds Control
