Borrower leveraged his assets for speed on this business purpose cash out to invest in a large Real Estate development in Coachella Valley. This 1st Trust Deed offers $3,052,000 in Investor Protective Equity on this “Free and Clear” – no existing debt – subject property.
Borrower shows substantial cash reserves and net worth to service debt. Borrower and his business partner, owner of commercial real estate company in Rancho Mirage, both placing personal guarantees on this loan. Exit plan: pay off this loan through refinance and / or personal assets before end of loan term.
The subject property includes 1 freestanding industrial building that offers 2 stories, subject totals 11,763 SF net rentable space, sits on a 20,038 SF or .34 acres lot and was originally constructed in 2020 in Good Class “B” condition. The subject is located within “Morongo Industrial Park” which is gated around the perimeter, has 24×7 security and is located on a commercial street that offers 4 asphalt-paved lanes. On-site parking consists of 71 asphalt paved and marked parking spaces.
The subject is configured to house a single tenant and is 100% leased and occupied by a single tenant. The building offers 3 restrooms, 3 offices, and 5 metal roll up doors. The building is used for cannabis cultivation and refinement. The building offers front and rear entrances, HVAC and a security and fire alarm system. Our physical inspection indicated that the interior build-out is good quality and is in good condition. Subject earns $453,862 annual rent / $38.58 PSF Triple Net. Subject is located near 10 Fwy and North Palm Springs within an industrial and residential neighborhood.
Combined Personal Guarantors net worth between the two is estimated $645M. Borrower electing to leverage his assets for business purpose cash out on this loan. Personal Financial Statements in Investor Dropbox. Both have extensive real estate knowledge and liquid assets to service this new loan debt.
What we like about this Trust Deed opportunity:
- “Vista Paint” Owner/Founder with large net worth – liquidity to pay
- 15.00% Investor Yield
- Borrower has substantial cash reserves and a large Real Estate Portfolio with Equity
- 30.00% LTV
- 28.76% Net LTV
- Two Personal Guarantors
- Net Investor Equity: $3,052,000
- Fully occupied earning $453,862 annual rent / $38.58 PSF Triple Net
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
