Successful business owner and real estate investor sought a small 200K 2nd Trust Deed business purpose cash out loan on this Fourplex (4 Unit) investment property near the “Beverlywood” neighborhood of Los Angeles, Los Angeles County, CA. The purpose of this loan is to pay off a current and in good standing 100K HELOC and the balance of the funds will be used for minor upgrades to subject property to maximize its resale value.
The borrower’s 1st TD of $1.108M 1st TD is a conventional loan, 30 year @ 2.16% fixed rate which is current and in good standing.
The subject property is a two-story, Spanish style, 4 Unit “Fourplex” near the “Beverlywood” neighborhood of Los Angeles, CA. The subject property features a total of 20 rooms, 8 Bed / 4 Bath with a total of 5,081 SF living space, hardwood floors and fireplaces on a .15 acres lot. The subject property is fully occupied. The borrower lives in 1 unit and tenants occupy the other 3 units. The subject property earns collectively $7,415 a month from tenant annual leases.
The subject property is very well located, just south of Beverly Hills and Wilshire Blvd.; near many restaurants, shopping, schools and entertainment; including the Los Angeles Museum of Modern Art and Wilshire Hancock Park. The subject property is surrounded by similar Fourplex investment properties and is just north of the 10 Fwy.
This is a 58.70% CLTV and 58.41% Net LTV based on a recent BPO value of $2,075,000. Redfin has property valued at $2,177,772 and Zillow has property valued at$2,028,000. Minimum investment for this Trust Deed is $50,000, yielding a 10.50% annualized return.
What we like about this Trust Deed opportunity:
- Successful real estate investor and business owner – borrower owns a Computer Systems company and wife is a clinical nurse @ UCLA Health
- Income Generating 4 Unit in popular “Beverlywood” near Beverly Hills, Los Angeles Neighborhood
- 10.50% Investor Yield
- CLTV: 58.70%
- $856K Gross Investor Protective Equity
- 6 Months Guaranteed
- 3 Months Prepaid
- The borrower is paying down $25K in principal each year on the 1st TD so investors on this 2nd TD will benefit from a reducing CLTV while in this trust deed investment. Plus, taxes and insurance are being impounded on the 1st TD.