Successful wage earner and real estate investor/flipper sought a short-term 1st TD to purchase this SFR investment property in Oroville, CA, rehab it with her own funds, then upon completion in 6-9 months, list and sell it for a quick profit. The borrower plans to put an estimated amount of $70,000 of upgrades into the property – most of which are cosmetic. No square footage will be added. Besides new roofing, siding, and flooring, the rehab will be rubbish cleanup from the previous owners, landscaping around the property for better curb appeal, and a new paint job of the entire home inside and out. The borrower and her family have completed two fix & flips almost identical to this in the past two years. The borrower plans to have the rehab complete in six months and sold in nine months which will pay off our loan. The borrower’s up front ‘skin-in-the-game’ is the down payment of approximately $123,000 plus, she will be using her own funds for the rehab. The current As-Is value is $305,000 and she plan to list the property for $450,000.
The subject property is single-story ranch-styled home consisting of 1,729 sq ft and sits on a 5.41-acre lot. It has 7 total rooms including 3 bedrooms and 2 bathrooms, a laundry room and a porch & patio. Outside, there are many different types of trees including Oleander, Olive, Eucalyptus, Palm, and Mimosa The borrower plans to do a full cleanup of the property both inside and out. A new roof, new siding, new flooring, and new windows will all be installed as well as a full landscape overhaul. The property also consists of a detached 2-car garage and a large barn which are both being used as storage. These will both be cleaned out and upgraded as well. The property is very large and could easily house a few more units for future buyers. The home resides in the city of Oroville, which is on the eastern rim of the Great Valley, adjacent to State Route 70 and near State Route 99. Recreational opportunities abound on leisurely weekends with close proximity to Lake Oroville State Recreation Center and Table Mountain nature and wildlife area. Additionally, you’ll be nearby a wide range of parks and schools.
What we like about this Trust Deed opportunity:
- Borrower and her family have completed two similar fix & flips in the last two years
- Non-owner-occupied investment property
- Wage earner
- Large lot with great potential additional units being added especially once landscaping is done
- 6 months guaranteed interest
- Short 12-month term loan
- 10.25% yield on a 1st TD
$198,250 1st TD @10.25%, 65.00% LTV, Purchase, SFR, $39,650 Min Inv., Oroville, CA
