Loan Purpose
The borrower sought a $455,000 business-purpose acquisition 1st TD loan to purchase a Non-Owner-Occupied single-family residence in Los Angeles. The borrower is a successful real estate investor and owner. The new owners signed the Purchase Agreement for $520,000 in February 2026 and released their $15,000 earnest money deposit to the Property Owner. The buyers/borrowers during Feb. – April 2026 invested est. $70k to remodel the property which is now valued at $705,000. The buyers now plan to close on their purchase and either rent or sell the property.
The borrowers are putting a down payment of 12.5% or $65,000 + Closing Costs. Loan proceeds will be used for the purchase of the property, with additional borrower plans tied to rental or sale strategy and additional property improvements. The 18-month term is consistent with bridge financing designed to provide time for stabilization, refinance, or sale.
Property Description
The collateral is a detached single-family residence in Los Angeles, CA 90002 containing approximately 1,310 square feet with 3 bedrooms and 2 bathrooms on a 4,763 square foot lot. Public records indicate the home was originally built in 1926 and zoning is reported as LCR2*, which may provide added utility or future use flexibility, subject to independent verification.
The home is recently remodeled with updated flooring, paint, fixtures, and windows. The Broker Price Opinion indicates an As-Is value of approximately $705,000 and the Appraisal values the property at $730,000. CrowdTrustDeed is using the $705k value for our loan.
The investment is secured by a 1st Trust Deed. Based on the stated loan amount of $455,000 and the $705,000 As-Is value, the loan-to-value is approximately 64.5%.
What We Like
- From a credit perspective, the most notable strength is the moderate leverage level. A 65% CLTV based on the current As-Is valuation provides a meaningful equity cushion beneath the debt position.
- The loan is secured in 1st position, which is generally the strongest lien position in the capital stack.
- The property appears to be in improved condition with recent remodeling already completed, which may reduce near-term deferred maintenance risk versus heavy rehabilitation projects.
- The Los Angeles infill location benefits from a large and established housing market with ongoing demand from both owner-users and rental occupants, supporting multiple potential exit paths.
- The short-term bridge structure also creates a defined timeline for execution rather than Ban open-ended hold.
- BPO of $705k and Appraisal of $730k
