Experienced real estate investors sought a 1st TD Business Purpose Purchase + Rehab for a Fix & Flip in Huntington Beach, Orange County. This transaction will be cross-collateralized with a 1st TD Cash-Out refinance on the Borrower’s primary residence in Buena Park, Orange County. The funds from our loan will be used to purchase the Huntington Beach property, currently in escrow, and use $45,000 to renovate the property with an exit strategy to sell the HB property for a profit. Borrowers are using $170,000+ of their own cash and equity for the transaction.
The Huntington Beach subject property is a beautiful traditional style condo, with 1,272 SF living space located in a very desirable, private gated Orange County location. The property has 7 total rooms which includes 3 large bedrooms, 2 full bathrooms and a walk-in tub. The property also features 2 large patios, a private one car garage and a single parking spot. The subject property is walking distance to the beach and minutes away from freeways, parks, schools, shopping plazas, and restaurants. Borrower plan to do several improvements to the property including removing all existing flooring and replacing with new tile and carpet, painting the entire unit, completely remodeling the kitchen, upgrading all the lighting and sockets, remodeling both bathrooms, and replacing all windows and doors with new ones.
This subject property in Huntington Beach is on leased land which expires 19 years from now in 2041. Our loan matures in 3 years which is leaves 16 years before Ground Lease Maturity. The land lease agreement has been reviewed and approved by the Lender’s Attorney’s. Also, the attorney confirmed that these condos are improvements to the land and thus are real property, not personal property.
The Buena Park (cross-collateralized property) is a traditional colonial style single family residence in a beautiful suburban neighborhood that has 1,696 SF of living space and sits on a 0.14 acer lot. The property has 8 total rooms which include 4 bedrooms and 2 full bathrooms, an attached 2-car garage, and a large backyard with a pool. The property is very well located near many schools, shopping plazas, restaurants, and freeways.
What we like about this Trust Deed opportunity:
- Combined BPO/appraisal value $1,081,000
- $370,840 gross protective equity
- 9.50% investor yield
- 6 months guaranteed interest
$710,160 Blanket 1st TD @ 9.50%, 65.00% LTV, Huntington Beach and Buena Park, CA
