Successful business owner sought a short-term business purpose cash-out 2nd TD on this beautiful custom owner-occupied residence in Bakersfield, CA. The borrower is an Almond Farmer and 100% of the loan proceeds will go towards upgrading the businesses equipment, irrigation, electricity, pumps, and harvest for this next grow. The exit strategy from our loan is to pay it off from the proceeds of the crop in approximately 6-9 months. In 2021, the farm did $2,300,000 in sales and in 2022, it did $1,450,000 in sales (Tax Returns in file). The borrower expects another $2,000,000+ sales year for 2023.
The subject property is a beautiful custom 2-story, 4 bedroom/3.5 bathroom single family residence that is 4,524 SqFt and sits on a 20 acre lot. The 20 acres is mostly comprised of Almond Trees – the farm’s income source. The home is fully upgraded with high end appliances, surveillance cameras, fireplaces, a game room, a custom pool and spa, and a detached garage that also has a bonus room which is used as the borrower’s office. The home is accessed via a private gated driveway and is surrounded by other properties that are similar in acreage. The borrower’s 1st TD is a Conventional 30-Year loan that is current and in good standing, has a principal balance of $350,467 @6.25%, a PITI payment of $4,770/month, and doesn’t mature until March 1st, 2049.
What we like about this Trust Deed opportunity:
- 53.27% CLTV, 52.52% Net CLTV
- 13.00% annualized return
- Short 12-month term
- Very Successful Business Owner/Farmer
- 3 months Prepaid interest
- 6 months Guaranteed Interest
- Property uniqueness, location, and views
$236,000 2nd TD @ 12.25%, 53.27% CLTV, SFR, Cash-Out, $47,200 Min Inv., Bakersfield, CA
