Loan Summary
Real estate investor and business owner borrower sought a 1st TD business purpose cash out refinance loan on this beautiful contemporary investment estate with a two story SFR and a walnut orchard hobby farm in Yuba City, Sutter County, CA. The purpose of this loan is to consolidate current and in good standing 1st and 2nd TD existing debt totaling $1.1M and the balance to reinvest into the borrower’s expanding agricultural business. Borrower also owns a triple net lease non-owner-occupied “free and clear” commercial strip-mall as well as two income producing “free and clear” land parcels growing prunes and almonds also located in Yuba City. The borrower can service the loan through multiple income streams, including ongoing agricultural operations on the two-income producing AG land parcels, and rental income from the subject property as well as commercial property.
Property Description:
The subject property is a high-quality contemporary estate with a 5,954 SF, two-story SFR, featuring 5 bedrooms and 4.5 bathrooms situated on 15.5 acres. In addition to the primary living areas, the home includes a cinema, office, study, family room, formal living and dining areas, breakfast nook, and foyer, providing a versatile and luxury-style layout. The property also includes a large 4-car garage with a bathroom and laundry area. The home has updated kitchen and bathrooms and shows no deferred maintenance. The expansive site includes approximately 11.6 acres of walnut orchard. Located in a rural residential setting near amenities, the property’s size, utility, and amenity-rich layout, supports its appraised value of $2,151,000. This new 1st TD loan is based on 65.00% of SFR $1,850,000 value and 25.00% LTV of land’s $300,000 value.
Investment Summary: This is a 1st Trust Deed with 59.39% LTV and 57.46% Net LTV on a recent appraised value of $2,151,000. This loan features with 6 months Guaranteed Interest and 3 months Prepaid Interest, yielding a 11.50% annualized return. The minimum investment is $51,100. The exit strategy is refinance after credit repair resulting from a recent divorce.
What we like about this Trust Deed opportunity:
- 1st Trust Deed with 59.39% LTV and 57.46% Net LTV
- 11.50% Investor Rate
- Beautiful Investment Estate with SFR with walnut orchards
- Borrower owns income producing investment real estate (commercial earning $10,800 monthly, other AG land earning $9,100 monthly and subject earning $2K monthly)
- 6 months Prepaid Interest
- 3 months Guaranteed Interest
