Successful wage earner and real estate investor sought a short-term $1,460,000 blanket 1st Trust Deed cash-out refinance on these two non-owner-occupied multi-family rentals in Long Beach, Los Angeles County, CA. The borrower is currently going through a divorce which is to be finalized in the next couple months. He has been ordered to pay his soon-to-be-ex-wife, who is also on title of the properties, a lump sum of $580,000 (divorce decree in file). He doesn’t want to sell these properties as they bring in $14,000+ in gross monthly income (rent roll in file). Our loan will payoff both existing 1st TDs which will also take the wife off title, pay her the lump sum of $580,000 through escrow so the divorce can be finalized, and net the borrower about $45,000 cash for upgrades to a few of the units so that he can increase rental income. The borrower has a refinance lined up once the divorce is finalized and in the works but he first needs to quickly pay her out and take her off title. The borrower expects the divorce to be finalized in the next 30-60 days, after which he will immediately work on getting the new refinance closed to get out of our loan.
The 4-unit multi-family property is a two story, 3,872 SF traditional-style residence sitting on a 2,461 SF lot. Two of the units are 888 SF and each contains 1 bedroom and 1 bathroom, while the other two units are 951 SF and each contains 2 bedrooms and 1 bathroom. In total, the property contains a total of 18 rooms, has plenty of street parking, is only a few blocks from Downtown Long Beach and is less than a mile from the Beach. This property is currently valued at $1,100,000 and as of today, is bringing in $5,404/month in gross rental income. The 8-unit multi-family property is a two story, 2,973 SF traditional-style residence sitting on a 2,262 SF lot. All 8 units are studios that offer a kitchen, bathroom, wall heating and window AC and range from 340 SF to 417 SF. There is an exterior laundry room and plenty of street parking. This property is only a half mile from the 4-unit property, so it is also very close to Downtown Long Beach and the beach, where there are tourist destinations, restaurants, shopping, bars and entertainment. This property is currently valued at $1,700,000 and as of today, is currently bringing in $8,693/month in gross rental income.
What we like about this Trust Deed opportunity:
- Very popular Long Beach location
- Borrower with plenty of experience owning & managing multi-family properties
- Viable exit-strategy which is already in motion
- Solid and stable rental income
- 52.14% LTV, 50.14% Net LTV
- 10.00% Lender Rate
- $1,340,000 of Gross Protective Equity
- 3 months Prepaid Interest
- 6 months Guaranteed Interest
$1,460,000 1st TD @ 10.00%, 52.14% LTV, Multi Famly, Cash Out, $73,000, Min Inv., Long Beach, CA
