Successful business owner/operator of “Trinity Iron Works” and real estate investor sought a cash-out 1st TD on this commercial building and two adjacent lots, each with their own electrical/gas/address, to pay-off a small, existing and in good standing $175k 1st TD and 100% of the balance of the funds will be used towards the down-payment purchase of a nearby commercial building to support borrower’s expansion needs to meet surge in demand for his company’s commercial and residential metal roofing fabrication and installation business.
Mortgage Vintage Inc. is also facilitating the purchase loan for the new commercial property. Funds from this loan will be transferred direct from this refinance escrow account to the purchase loan escrow account. The borrower invested $300k in property improvements and production machinery into this subject property in 2020.
The subject property consists of one single-story, in good condition, industrial warehouse with 3,000 SF usable space on a 0.22 acres lot. Building consists of metal framing with concrete foundation, (2) 12’x14’ grade level rollup doors, two separate office buildouts, a second level mezzanine with spiral staircase access for storage areas, two restroom modules and the two excess land lots with their own electrical/gas/address each 0.21 acres (or 9,147SF) being used by owner/operator for material storage and additional open parking area. The subject property is centrally located off Main Street HWY 3 and near similar industrial-commercial buildings, shopping plazas and gas stations.
What we like about this Trust Deed opportunity:
- 1st TD with 10% annualized return
- High demand for borrower’s metal roofing business
- Purpose of loan expansion of growing business
- Mortgage Vintage managing the cash out and purchase of new commercial property
- Good condition commercial building
- 56.67% LTV (60% LTV on Commercial and 35% LTV on 2 lots)
- $325K Gross Protective Investor Equity
- 6 months Guaranteed Interest
$425,000 1st TD @ 10.00%, 56.67% LTV, Cash Out, 6 mo. Guar Int., 36 mos. term, Weaverville, CA
