Successful real estate investor and experienced business owner sought a 1st TD business purpose cash out refinance on this agricultural investment property in Hayfork, Trinity County, CA. Our loan was used to pay off a current, existing $190,000 1st that is in good standing. The remaining loan proceeds will be used to expand the cannabis grow facilities and upgrade the cultivation & processing equipment for the borrowers’ cannabis business. Exit strategy from this loan is to pay off through business proceeds or refinance.
The subject property is a 5.86-acre single improved parcel with (4) Greenhouses on site, a separate 7gpm water well pump and (5) water storage tanks for irrigation of the subject’s land. The property has electric metered service, propane tank on site and water reservoir/pond.
The business expansion includes purchasing 100 new LED bulbs, 2 humidifiers, fans, exhaust fans, improved irrigation system, new soil and to build a new drying room. With these improvements, the borrower will be able to increase the amount of grows from 2 to 4. He estimates this should increase yearly revenue by around $500,000.
The subject property is located in a beautiful, rural part of Northern California surrounded by agricultural properties. The subject property is approximately 30 miles west of Redding and near several rivers, lakes, hiking trails, local shops, and national parks.
What we like about this Trust Deed opportunity:
- Experienced real estate investors
- 35.00% LTV, 34.06% Net LTV on Appraised Value
- 14.50% Annualized Investor Return
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
- $663,000 gross protective equity to investors
- Fully permitted cannabis license / seasoned growers