Successful real estate investor and business owner sought a $990,000 2nd TD business purpose loan on this SFR investment rental property (AirBnB/VRBO) in Hollywood Hills, Los Angeles, CA. The purpose of this loan is to pay off an existing current and in good standing $200,000 2nd TD and the balance of funds will be used for minor upgrades to borrower’s three luxury SFR AirBnB/VRBO real estate assets as well as marketing for the business and cash on hand for a potential purchase of a 4th luxury rental.
The borrower’s 1st TD is with Shellpoint (NewRez) which is current, has a principal balance of $2,255,000, 4.25% fixed rate, $11,511.39/month payment and matures June 2051. The 1st TD Lender impounds taxes & insurance. The exit strategy from our loan is a conventional consolidated refinance which is already lined up.
The subject property is a 3 story, contemporary, 5,586 SF, 3-story in excellent condition, located in the upscale Sunset Plaza area of the Hollywood Hills. The SFR consists of 15 total rooms including 7 bedrooms and 5 bathrooms. The top level features an open layout with a chef’s kitchen, vaulted ceilings, and an outdoor patio terrace. There is also a large family room, formal dining area for 12 and a game room with a pool table and wet bar. Adjacent to the game room is a sauna and bathroom with private entrance. The SFR rooftop has views of the city, lounge chairs and luxe seating, a fire pit, standing bar and a heated pool and spa. Other amenities include a private elevator, 2-car attached garage with EV charging station and a laundry room.
The borrower is the CEO of Luxury Mansion Rentals and including this one, she owns three short-term rentals. This property rents for about $1,135/night with a 3-night minimum booking. Over the past 12 months, the three rental properties have a combined average income of $233,000/month. In the past 6 months, that average income is $259,000/month.
What we like about this Trust Deed opportunity:
- Successful real estate investor and business owner
- Beautiful and exclusive Hollywood Hills location
- Gross Protective Equity of $2,655,000
- 53.25% CLTV, 52.15% Net CLTV
- 14.75% Lender Rate
- 6 months Prepaid Interest
- 12 months Guaranteed Interest