Executive Summary
Real estate investors sought a 1st TD business purpose cash-out refinance loan to build an investment SFR in a gated community, “Scenic Bend Estates” in Modesto, Stanislaus County, CA. The purpose of this loan is to pay off an in good standing, on time payment history 1st TD and the balance placed in Funds Control to build an SFR then sell for profit upon completion. Borrowers have all plans, permits in place conforming with the planned community zoning. The Licensed General Contractor and Construction Feasibility Review confirmed budget is sufficient to complete the project. Borrower purchased the land in January 2025 for $300K and put 30% down plus borrower has prepaid for all the appliances and landscaping.
Property Overview
The subject property will be a one story, contemporary SFR in a suburban gated community, “Scenic Bend Estates” in Modesto, CA. The home will offer 2,900 square feet of living space on a 12,046 SF lot, comprising of 7 total rooms, including 4 bedrooms and 2.5 bathrooms. Additional amenities include 3-car attached garage, 3-car driveway, newly landscaped front yard and backyard, a porch and patio. The subject is well located near golf courses, local schools, hiking trails, parks, restaurants.
Loan Highlights
- 1st TD on a new SFR in suburban, gated community
- Attractive investor yield of 12.50%
- 6 months of guaranteed interest
- 5 months of prepaid interest
- 1st TD with 65.00% LTV / 26.34% Net LTV with Funds Control
