Real estate investors and experienced business owners sought a 2nd TD business purpose cash out loan on this mixed-use investment property in Miranda, Humboldt County, CA. Borrowers existing 6% interest, 1st TD of $461K is current and in good standing. The funds from this loan will be used for an immediate capital infusion into the expansion of salesforce for borrowers’ burgeoning cannabis business which grows = wholesales premium cannabis clones throughout California. Exit strategy from this loan is to pay off through business proceeds or refinance.
The subject property consists of 2-story, 2,500 SF custom ranch styled SFR with spectacular meadow and mature forest views on an expansive, privately gated 38.18 acres single parcel lot south of Humboldt Redwoods State Park. The SFR consists of 10 total rooms, 4 Bed / 2 BA and features an indoor sauna, outdoor jacuzzi, sunroom, numerous fruit trees, large, beautiful pond on the grounds and a 600 SF detached garage with storage. The SFR is 100% occupied, “pocket to pocket” lease of $5,500 / mo. SFR operates as an office + residence for cannabis onsite management team. Borrowers personally invested $49K in home improvements in a recent 2019 remodel of SFR.
The subject property also consists of a 950 SF commercial cannabis drying building with roof mounted solar, three greenhouse grow areas with electric/solar service and a significant irrigation system running through property with multiple storage water tanks to support any type of agriculture. The borrowers have also personally invested $498K in improvements to cannabis infrastructure on subject property. Subject property is fully licensed and permitted for cannabis.
What we like about this Trust Deed opportunity:
- 37.42% CLTV, 33.98% Net CLTV on Appraised Value
- 11.00% Annualized Investor Return
- 6 months Guaranteed Interest
- 9 months Prepaid Interest
- $5,500 SFR “pocket to pocket” mo./lease
- Borrowers invested $547K in recent property improvements
- $1,189,000 gross protective equity to investors
- Fully permitted cannabis license / seasoned growers
