Borrowers and business owners sought a $380,000 2nd Trust Deed business purpose cash out loan on this owner occupied SFR property in Chula Vista, San Diego County, CA. Borrowers own an established home improvement company servicing San Diego county. Funds from this loan will be used to invest in their business and $250K placed into Funds Control to finish ADU for rental income on subject property. Exit strategy: HELOC.
The borrowers’ Wells Fargo bank 1st mortgage is current with a principal balance of $239,925, a fixed interest rate of 3.50%, maturing March, 2043, and a P&I payment of $1,910/mo. The first lender impounds for taxes and insurance.
The subject property is a traditional styled 2 story SFR with new fully remodeled kitchen and bathrooms, in very good condition on a large 12,600 SF lot with big canyon views in the suburban Eastlake neighborhood of Chula Vista, approximately 20 minutes from downtown San Diego. The subject property features 1,673 SF living space, a total of 7 rooms, 4 Bedroom / 2.5 Bathrooms, an attached 2-car garage. The subject property features an outdoor kitchen, patio balcony off master bedroom, RV parking. The ADU will feature two stories, 2 Bed / 2.5 Bath and 1,058 SF. Borrowers using licensed General Contractor, fully permitted and 30% complete from borrowers “skin in game”. Projected rental income off ADU: $2,500 – $3,000 monthly. The subject property is surrounded by SFRs, restaurants, boutiques, shops, Discovery Park, El Rancho Del Rey Park, Voyager Park, Sunridge Park & Chula Vista Community Park, many local schools, located west of the 215 FWY.
What we like about this Trust Deed opportunity:
- Good condition suburban SFR in San Diego County
- 12.00% Investor Yield
- 51.66% CLTV
- 8.70% Net CLTV with $250K Funds Control
- Funds Control for ADU completion – borrower “skin in the game”
- 6 months Prepaid Interest
- 6 months Guaranteed Interest
- Exit Plan to Pay off Loan: HELOC
$380,000 2nd TD @ 12.00%, 51.66% CLTV, OO, 18 mo. term, $38,000 Min Inv., Chula Vista, CA
