Real estate investor sought a 1st TD business purpose cash out loan on this non-owner occupied SFR investment property in Clearlake, Lake County, CA. Funds from our loan will be used to pay off a small and in good standing $20k 1st TD, and the balance will be used to remodel this rental subject property. Borrower’s exit strategies: conventional refinance or sale of property.
BPO “As Is” Value = $150K and BPO once “Repaired” = $229K
The subject property is a bungalow styled SFR with 1,096 SF living space on a .12 acres lot. The SFR consists of 7 total rooms, 2 Bed / 2 Bath. The property features a covered deck and fenced backyard. The property is centrally located downtown Clearlake, close to schools, entertainment, restaurants, shopping, parks, medical facilities and near the popular recreational Clear Lake. The subject property is east of the 101fwy and 1.5 hours NW of Sacramento, CA. Once remodeled within 30 days or less, borrower will immediately list this subject property for $1,400 mo./rent. This new interest only payment is $928/mo.
Borrower is well diversified, owns other real estate investment properties (Schedule RE in investor file) as well as a “Firehouse Pizzeria” in San Francisco, CA.
What we like about this Trust Deed opportunity:
- Non-Owner Occupied SFR Investment Property
- Experienced Real Estate investor, landlord and business owner
- 10.50% Annualized Return
- 51.43% Net LTV
- 55.00% “As Is” LTV
- 6 Mos. Prepaid Interest
- 6 Mos. Guaranteed Interest
- $1,400/mo. rental income after remodel
- Well-Diversified borrower with several sources of income
$82,500 1st TD @ 9.00%, 55.00% LTV on Value, sfr, 24 mos., 6 mo. guar., Clearlake, CA
