Loan Summary:
Real estate investor sought a business purpose 1st TD on this non-owner occupied, fully renovated single-family ranch-style residence located in the desirable El Dorado neighborhood of Long Beach, California. The purpose of this loan is to pay off a $773,000 1st TD. The borrower purchased the property as an investment fix-and-flip project and has invested significant capital into the renovation and carrying costs. Borrower will also be bringing in $80K cash to this loan closing. The property is listed for sale for $1,199,000. This loan has a minimum of 6 months of guaranteed interest to investors. The exit strategy is the sale of the property, supported by the current appraised value of $1,150,000 and strong market demand in the area. The subject is very well located right next to the El Dorado Park golf course, pickleball recreation center, many local schools, shopping, restaurants, and the 405/605 FWYS.
The borrower experienced default in existing loan due to delays caused by a contractor who failed to complete the work within the expected timeline, which resulted in the existing balloon payment becoming due before renovations were finalized. The borrower terminated the contractor, completed the renovations independently, contributed over $100,000 toward the project within the last six months, and is now positioned to market and sell the property.
Property Description:
The property is a fully renovated single-family ranch-style residence located in the desirable El Dorado neighborhood of Long Beach, California. The property features approximately 1,232 square feet of living space with 3 bedrooms, 2 bathrooms, an attached 1-car garage, and sits on a 5,231 square foot lot. The home has undergone significant interior and exterior renovations within the last year, including updated stucco, paint, windows, flooring, kitchen, bathrooms, lighting, appliances, electrical, and plumbing systems. Additional features include central heating and air conditioning, a fireplace, covered patio and porch areas, landscaped yard space, and modernized finishes throughout. The subject is very well located right next to the El Dorado Park golf course, local schools, restaurants, and the 405/605 FWYS. The property is positioned in a stable, high-demand residential market with strong comparable sales supporting the appraised value of $1,150,000.
What we like about this Trust Deed opportunity:
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- Newly remodeled single family residence in desirable Long Beach neighborhood
- 1st TD with a 11.00% Investor Rate
- Borrower who has skin in the game into investment property
- 6 months Guaranteed Interest
- 2 months Prepaid Interest
