Successful, repeat Mortgage Vintage borrowers, real estate investors and business owners sought a 1st TD business purpose cash out refinance loan on this mixed-use investment property in Miranda, Humboldt County, CA. The funds from this loan will be used to pay off a current and in good standing 1st $460K and a $250K 2nd TD (held by Mortgage Vintage) and the balance of funds will be used for property improvements and capital infusion to support growth of borrowers’ wholesale premium cannabis clones business. Borrowers’ business “Humboldt Cheeba Works, LLC” opened in 2015 has an A+ rating with the BBB. Borrowers are cash solvent and profitable 2022 P&L in investor Dropbox. Demand remains consistent for quality California Cannabis Nurseries (aka clones) which have not experienced same decline as some cannabis outdoor grows. Exit strategy from this loan is to pay off through business proceeds or refinance.
The subject property consists of 2-story, 2,500 SF custom ranch-styled SFR with spectacular meadow and mature forest views on an expansive, privately gated 38.18 acres single parcel lot south of Humboldt Redwoods State Park. The SFR consists of 10 total rooms, 4 Bed / 2 BA and features an indoor sauna, outdoor jacuzzi, sunroom, numerous fruit trees, large, beautiful pond on the grounds and a 600 SF detached garage with storage. The SFR is 100% occupied, “pocket to pocket” lease of $5,500 / mo. SFR operates as an office + residence for cannabis onsite management team. Borrowers personally invested $49K in home improvements in a remodel of SFR.
The subject property also consists of a 950 SF commercial cannabis drying building with roof-mounted solar, three greenhouse grow areas with electric/solar service and a significant irrigation system running through property with multiple storage water tanks to support any type of agriculture. The borrowers have also personally invested $498K in improvements to cannabis infrastructure on subject property. Subject property is fully licensed and permitted for cannabis.
The subject property is surrounded by similar ranch properties, located west of the 101 FWY, nearby Salmon Creek private school and local shops, restaurants, hiking trails and several national parks.
What we like about this Trust Deed opportunity:
- Successful repeat MVI borrowers and experienced business owners
- 49.00% LTV and 45.26% Net LTV on Recent Appraised Value
- 13.75% Annualized Investor Return
- 6 months Guaranteed Interest
- 6 months Prepaid Interest
- Borrowers invested $547K in property improvements
- $969,000 gross protective equity to investors
- Fully permitted cannabis license / seasoned growers
$950,000 1st TD @ 11.50%, 50% LTV Cash-Out NOO SFR $47,500 Min Inv, Miranda, CA
