1. Loan Purpose: Experienced real estate investor and builder sought a 1st Trust Deed on this investment, non-owner occupied brand-new construction SFR located in a Paradise, Butte County, CA. The purpose of this loan is to pay off an existing and in good standing $100K 1st TD maturing and the balance placed into $145K Funds Control to complete build out of SFR. The exit: sale of property upon completion. An independent construction feasibility study confirmed $145K is sufficient to complete the SFR with a recent $562,000 After Completion value appraisal. Borrower has $55K cash into project of personal funds. All plan, permits and licensed, experienced General Contractor in place. This will be the 9th successful ground up construction SFR project to sell upon completion for borrower. Net LTV after 5 months prepaid and Funds Control, only 24.34% Net LTV on this 1st Trust Deed investment SFR loan.
2. Property Description: The subject property is a brand-new construction ranch styled, one-story SFR in Paradise, Butte County, CA, a bedroom community for Chico, CA. The subject offers a total of 2,054 SF on a 14,810 SF lot, consisting of a total of 6 rooms with 3 Bed / 2.50 Baths. The subject features a deck/patio, fencing around perimeter and two-car-attached garage. Subject property is centrally located within a mile radius to schools, shopping centers, hiking, trails and parks. Subject is East of the 5 FWY.
What We Like:
- 1st TD on a brand-new construction investment SFR
- Low 51.25% LTV and 24.34% Net LTV on new appraisal
- 12.00% Investor Yield
- Experienced Builder, 658 FICO
- 5 months Prepaid Interest
- 6 months Guaranteed Interest
$288,000 1st TD @ 12.00%, SFR, 51.25% LTV, 18 mo., NOO, Const., $36,000 Min., Paradise, CA
