Loan Overview:
An experienced Mortgage Vintage borrower—an entrepreneur and seasoned real estate investor—sought a first Trust Deed, cash-out loan secured by a recently acquired single-family residence in Santa Ana, CA. The borrower, Premium Home Services, Inc., will use the loan proceeds to complete a full property renovation and construct two ADU’s (Accessory Dwelling Units), maximizing the property’s value before sale.
Loan Purpose:
The property was purchased in cash and the loan proceeds will be used to finish the renovation of the existing home and complete the 2 ADU addition.
Exit Strategy: Sale of the improved property upon completion.
Investment Terms:
- Purchase Price: $758,000
- Loan-to-Value (LTV) – 65.00%
- Net LTV (Post-Prepaid) – 63.21%
- Minimum Investment – $49,270 (10.00%)
- Investor Yield – 9.50% (Annualized)
- Guaranteed Interest – 5 Months
- Prepaid Interest – 3 Months
- Funds Control – None
- Use of Funds – Finish Renovation & ADU Completion
- Exit Strategy – Sale of Property
Investment Highlights:
- Desirable Location: Prime Orange County neighborhood in Santa Ana with large Lot
- Attractive Returns: 9.50% annualized yield, bolstered by prepaid and guaranteed interest
- Experienced Borrower: Repeat client with a proven track record
- No Funds Control: Immediate construction funds deployment with control for the borrower to make the improvements with the General Contractor
