Current MVI borrower and real estate investor developer is sought a business purpose refinance 1st TD on this residential lot in the Newport Heights neighborhood of Eastside Costa Mesa, Orange County. Funds from our loan will be used to consolidate and payoff an existing 1st TD and 2nd TD and provide funds controlled construction funds from a very experienced crew to complete the building of the new home.
The subject property began as an older SFR on a 7,219 s.f. vacant lot. The new home and development is pending final approval by the city of Costa Mesa to soon become a 2,682 s.f. contemporary ranch style SFR. A condition of Closing this loan will be the final building Permits issued by the City of Costa Mesa. At the completion of the project, the home will be a single story 4 BR/3 BA with 7 total rooms and modern amenities. The Shore-Tech General Contractor will manage the construction and the home will be highly upgraded throughout and will having a 2 car attached garage. The property is situated in the heart of Costa Mesa just a few blocks from the Back Bay, Triangle Square and 17th St. The borrower originally purchased the property in March 2019 for $1.075M.
100% of the $400k Construction Budget will be held in Funds Control by La Mesa Escrow and Funds Control. The borrower has spent $150k+ so far on Plans, Permits, Site Work and Construction items. This $150k site specific expenditure including Grading when coupled with the $400k construction budget equals approx. $550k total construction budget which is approximately a building cost of $205/s.f. When adding the Down Payment costs of $184k, grading, permits and loan interest, the Builders “Skin in the Game” so far totals $500k+.
What We Like:
- Eastside Costa Mesa, OC location paying 11.50%
- Current successful Mortgage Vintage borrower
- Experienced Real Estate Investor and Developer
- 1st Trust Deed at 60.00% LTV on ARV / 44.38% Net LTV on ARV
- Approved grading plans and permits
- 100% Funds Control of the $375k const. budget
- MAI Certified Appraisal
- 6 mos Guaranteed Interest
- 3 mos Prepaid Interest
- Borrowers $505k+ “skin in the game”
- Licensed General Contractor
- Borrower has $143k as of July 2020 in the bank to cover any overages on construction
- Borrower has commenced the grading of the lot