Loan Purpose
Mortgage Vintage successfully funded a $747,500 rate and term refinance for a real estate investor on their non-owner occupied single-family property in Long Beach’s desirable El Dorado neighborhood. The borrower utilized the loan to pay off an existing $773,000 first trust deed while bringing $80,000 cash to closing. This investment property had been fully renovated as part of a fix-and-flip project, with the borrower having invested over $100,000 in improvements during the previous six months after experiencing contractor delays.
What We Liked About This Trust Deed Investment
- Newly remodeled single family residence in desirable Long Beach neighborhood adjacent to El Dorado Park golf course
- Strong borrower with 701 FICO score and significant skin in the game
- Conservative 63.60% net LTV with property appraised at $1,150,000
- Six months guaranteed interest providing investor protection
- Property was already listed for sale at $1,199,000 with clear exit strategy
Property Description
The collateral was a fully renovated single-family ranch-style residence featuring approximately 1,232 square feet of living space with 3 bedrooms, 2 bathrooms, and an attached 1-car garage on a 5,231 square foot lot. The property had undergone extensive interior and exterior renovations including updated stucco, paint, windows, flooring, kitchen, bathrooms, lighting, appliances, electrical, and plumbing systems. The home featured central heating and air conditioning, a fireplace, covered patio and porch areas, and modernized finishes throughout. The location provided excellent proximity to El Dorado Park golf course, pickleball recreation center, schools, shopping, restaurants, and major freeways.
Investment Summary
This first position trust deed offered investors an 11.00% return with a conservative 63.60% net LTV ratio. The loan included six months of guaranteed interest and two months of prepaid interest, with a minimum investment threshold of $49,800. The 24-month term provided adequate time for the borrower to complete their sale strategy in Long Beach’s strong residential market.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $747,500 |
| Interest Rate | 11.00% |
| Lien Position | 1st Trust Deed |
| LTV | 65.00% |
| Net LTV | 63.60% |
| Term | 24 Months |
| Guaranteed Interest | 6 Months |
| Prepaid Interest | 2 Months |
| Minimum Investment | $49,800 |
Property Highlights
| Field | Value |
|---|---|
| Property Type | Single Family Residence |
| Square Footage | 1,232 sq ft |
| Bedrooms/Bathrooms | 3 bed / 2 bath |
| Lot Size | 5,231 sq ft |
| Garage | 1-car attached |
| Appraised Value | $1,150,000 |
| Listed For Sale | $1,199,000 |
| Occupancy | Non-Owner Occupied |
| Condition | Fully Renovated |
Frequently Asked Questions
What makes Long Beach’s El Dorado neighborhood attractive for real estate investment?
The El Dorado neighborhood in Long Beach offers excellent proximity to recreational amenities like El Dorado Park golf course and pickleball facilities, plus convenient access to schools, shopping, restaurants, and major freeways (405/605). This combination of lifestyle amenities and transportation access creates strong market demand and property values in the area.
How does guaranteed interest protect trust deed investors in refinance transactions?
Guaranteed interest provisions ensure investors receive their expected returns for a minimum period regardless of when the borrower repays the loan. In this case, the 6-month guarantee meant investors earned the full 11.00% return even if the property sold quickly, providing downside protection while the borrower executed their sale strategy.
What are the benefits of investing in first position trust deeds on renovated properties?
First position trust deeds on renovated properties offer enhanced security through improved collateral value and reduced maintenance risks. The completed renovations increase the property’s marketability and value, while the senior lien position provides priority in any collection scenarios. Conservative loan-to-value ratios further protect investor principal.
Mortgage Vintage, Inc. successfully structured and funded this investment property refinance, demonstrating our expertise in California’s diverse real estate markets and trust deed lending sector. As a California DRE-licensed hard money lender, we continue to provide secure, high-yield trust deed investment opportunities backed by our thorough underwriting and market knowledge.