Very successful borrower who is the Owner and Founder of “Vista Paint” https://www.vistapaint.com/ and experienced real estate investor of a large commercial and residential real estate portfolio throughout Southern California sought a business purpose cash out loan on this “Free and Clear” non-owner occupied improved 1.61-Acre Commercial Zoned Lot operating as a RV dealership with great location and visibility right off the 10 FWY and Washington Street exit in Palm Desert, CA. Borrower is pulling cash out from several of his commercial properties for large real estate development project in Coachella Valley. Borrower using private money vs. traditional for speed. Borrower and his commercial real estate partner both placing Personal Guarantees on this loan. Combined net worth estimated $645M. Personal Financial Statements in Investor Dropbox.
The subject property includes an RV dealership located within “Washington Business Park”. The Subject site totals 1.61 Acres, or 70,131 SF, and is located on a street that offers 2 asphalt-paved lanes. The subject site is improved with asphalt paving, lighting and palm trees around the parameter. The appraisers noted the improvements were in good condition. The subject earns $216,098 annual rent, $3.08 triple net PSF and a 6.25% Cap Rate. Subject is very well located right off the 10 FWY and Washington Exit and is surrounded by mixed commercial and retail uses along the borders of the primary traffic artery with residential along the interior streets.
Borrower’s net worth is assessed at $591M which includes his “Vista Paint” company valued at $50M and $392M in real estate assets plus stock/retirement assets. In addition to the investor protective equity on this subject property, borrower is personally guaranteeing this loan. Borrower’s exit options: pay off loan through business proceeds, personal assets or refinance. Borrower has substantial liquidity to service the loan debt.
What we like about this Trust Deed opportunity:
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- “Vista Paint” Owner/Founder with large net worth – liquidity to pay
- Borrower has substantial cash reserves and a large Real Estate Portfolio with Equity
- Great location right off 10 HWY high visibility
- 25.49% LTV
- 24.60% Net LTV
- 12.50% Investor Yield
- Net Investor Equity: $2,292,106 on recent appraisal
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
$775,000 1st TD @ 12.50%, 25.49% LTV, NOO, Comm, CO, 24 mo. term, $38,750 Min Inv., Palm Desert, CA
