During the successful 2016 8 Year Old Little League season, our coaches kept reiterating to “Keep Your Eye On the Ball”. Whether catching a fly ball, fielding a grounder or trying to hit a fastball, the message was the same to our CrowdTrustDeed Kids; Watch the ball.
Similarly, I tried to apply focus to Mortgage Vintage and CrowdTrustDeed’s Hard Money Lending and Trust Deed Investment business’ in 2016. Like a ball caught in the web of the glove or a crisply hit line drive, the focus paid off and the company reached our growth objectives and we achieved great success in 2016 with the help of our investors and lenders. I wanted to take a moment to reflect on a successful 2016 and highlight some of our accomplishments that we can build on for this year.
As a hard money lender in Orange County, Mortgage Vintage finished the year with nearly $26 Mil in loan originations, comprised by our typical mix of business purpose scenarios:
- PURCHASE LOANS, both residential and commercial
- REFINANCE LOANS, generally using equity in the borrower’s property to generate liquidity for investment projects.
Here are some relevant sample metrics from our 2016 production:
- Average Investor Yield: 10.03%
- Average Loan to Value on 1st Trust Deeds: 54.77%
- Average Combined Loan to Value on 2nd Trust Deeds 58.08%
- Average Loan Term: 27 mos.
- 2016 Amount interest paid to Lenders >$4.15 Mil
Following are a few notable hard money loan scenarios we facilitated in 2016: In no particular order:
- $400,000 cash out to fund improvements on a breathtaking view SFR rental property in Malibu, CA
- $850,000 fix n flip loan converting a bungalow to a beautiful 2 story contemporary home in Venice, CA
- $2,535,000 cash out on an SFR to fund a new business venture in Bel Air, CA
- $650,000 rehab loan to finish a SFR remodel in Chatsworth, CA
- $375,000 business purpose loan for improvements to a restaurant/bar in the Arts District, Los Angeles
- $300,000 hard money commercial loan for cash out for a new roof and repairs on a 30-unit Apartment Complex, Glendale CA
- $950,000 bridge Loan in Los Angeles, allowing an SFR buyer to close on a new purchase while selling their existing SFR
Mortgage Vintage continues to underwrite our loans with a conservative bias. We seek to fund only those loans that borrowers can afford, and that have a very high likelihood of timely repayment. While potentially more lucrative, we never go into a deal with a strategy of owning the property that secures our loan…in other words, hoping the borrower will default…which is not our style. Do you have any scenarios where you needed or need a Hard Money Loan? We would like to know. Please submit a post on our Mortgage Vintage, Inc. Facebook Page or our LinkedIn Company page. If you enjoy discussions like this, please sign up for our Linked in Group called Southern California Trust Deed Investment Group.