Real estate investor sought a business purpose cash-out 2nd TD on this non-owner-occupied SFR in Fresno, CA. Proceeds from our loan will be used for minor upgrades to one of borrower’s other investment properties. Borrower owns several SFR rental investment properties in Fresno. Exit strategy: sale of investment property.
The subject property sits in a privately gated, lakeview community. This subject property is a lakeside, cottage style, single story SFR with well-maintained landscaping, featuring multiple decks and a boat dock. Subject property consists of 2,322 SF living area, sitting on a .2 acres lot. From all six rooms in the SFR, there are lake views. Subject property includes 2 Bedroom / 2 Bathroom and 2 car attached garage. Borrower’s mother lives in this SFR investment property rent-free. The subject property is well located near many lakes, rivers, golf, tennis and recreational clubs, restaurants, medical facilities, and shopping.
The conventional 1st TD has a balance of $214,000 with a 4.50% rate, a $1,914/month P&I payment. 1st TD impounds taxes and insurance. The 1st TD matures August 2046.
This new loan of $127,250 is at a 57.35% CLTV and 55.72% Net CLTV based upon the recent Broker Price Opinion Value of $595,000. Loan structure features 6 months’ guaranteed interest, 6 months’ prepaid interest and a 13.00% annualized return for 24 months. Minimum investment is $63,750 or 50.00%.
What we like about this Trust Deed opportunity:
- Experienced real estate owner
- Lakefront SFR well maintained in private gated community
- 13.00% annualized return
- 6 months Guaranteed Interest
- 6 months prepaid interest
$127,250 2nd TD @ 13.00%, 57.35% CLTV, Residential, NOO, 24 mo. term, $63,750 Min Inv., Fresno, CA
