Very experienced 25 years + as property developer-owner, licensed general contractor and real estate investor with own RE portfolio of rental investment properties sought a 2nd Trust Deed to pay off an existing, in good standing 250K equity line and the balance will be placed in Funds Control to complete final finishing build on this 3 level, ocean-view SFR investment property located in very desirable Capistrano Beach, a coastal neighborhood in the city of Dana Point. Orange County, California.
The borrower’s $946,000 1st TD is current and in good standing with a 2.50% fixed rate, a low monthly P&I payment of $3,684, maturing January 2052. 1st TD Lender impounds taxes and insurance. This loan offers $1,869,078 Net Investor Protective Equity with 9 months prepaid interest.
Borrower has invested $750K “skin in the game” to date on construction (i.e., permits, plans, demolition, foundation, framing, roofing, steel reinforcement, kitchen completed and two bathrooms). The funds from this loan will be used to complete final phase (i.e., drywall, plastering, tiling, flooring, cabinetry, paint) Mortgage Vintage had an independent 3rd party conduct a Construction Feasibility Report that confirmed the Funds Control from this loan will complete the SFR based of a new After Completion Appraisal value of $3,850,000. Borrower is ready to complete finishing phase of build as soon as this loan funds. All permits in place, borrower has passed all inspections to date. The As Is value now is $3,265,000.
In the early stages of construction COVID lockdowns began. Project experienced delays due to lack of labor, shortage and rising expense of materials from supply chain blockages. Borrower has been self-financing the project the past year and is ready to complete final phase with our Funds Control loan then sell the subject to pay off loan.
The subject property will be a brand new, three story, ocean-view, contemporary style, SFR on a quiet corner lot, with 6,408 SF living space sitting on 6,188 SF, overlooking Capo Beach from the hill in Dana Point, CA. The subject property sits on the corner lot at the end of a private street with only 10 homes.. The subject property will feature 10 total rooms, 6 Bedrooms, 6.5 Bathrooms, 3 ocean-decks, a 3 car attached garage and two indoor fireplaces. The subject property is surrounded by similar SFRs, many new builds, in a quiet beach, suburban neighborhood. The subject property is very well located just minutes from popular Southern California beaches, near Pacific Coast Hwy, off the 5 Fwy and surrounded by several shopping plazas, restaurants, schools and parks.
What we like about this Trust Deed opportunity:
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- 748 very experienced developer-owner, General Contractor and RE investor
- Brand New Contemporary SFR w/ Ocean Views, private, quiet street, beach town, Capistrano Beach (Dana Point)
- 12.75% Investor Yield
- CLTV: 55.00% / Net CLTV 51.45%
- $1,864,294 Net Investor Protective Equity – new Appraisal
- 6 Months Guaranteed
- 9 Months Prepaid
- 2.50% Fixed Rate on 1st TD smaller loan than new 2nd TD
- Funds Control & Approved Feasibility Report – no mechanics liens
$1,171,500 2nd TD @ 12.25%, 55.00% CLTV, SFR, Const., $46,860 Min Inv., Dana Point, CA
