Swiss architect on a California road trip falls in love with the desert & turns a dream & vision into an Airbnb.com reality
- $300,000 1st Trust Deed
- 46% LTV on Appraised Value
- 11.5% Lender Rate
- 18-month, IO Loan
- 6 month’s Prepaid Interest
- Foreign National borrower
This remote Pipes Canyon home was all but forgotten, in very poor condition, and, had deferred maintenance everywhere you looked – inside and out. Due to its location and condition it was going to take a real estate investor with a keen vision to bring this property back to life.
Creativity, passion and best laid plans are one thing – being able to secure financing, execute the plan and complete the project in a remote desert location is quite another thing. Realizing this property and loan scenario weren’t suitable for the mainstream lenders in the fix & flip and rehab lending space, the broker of record contacted Mortgage Vintage to secure a rehab loan based on the After Repair Value of the completed project.
MVI took the time to drive to the property, meet the borrower in person and see the dire “before” property conditions. The borrower shared his amazing vision and plans, a relationship was established, and, a few weeks later the loan funded. To say that we are happy with the outcome is an understatement! The borrower’s passion and creativity shine through this beautiful property and MVI is proud to have played a part in helping him bring his desert dream to life.
Mortgage Vintage, Inc. (MVI) is a direct hard money lender that originates and funds business purpose loans for real estate investors and business owners. Many of our loans business purpose cash-out loans to Rehab a property that a real estate investor already has in his/her portfolio. We do these loans in both the 1st and 2nd position depending on the loan scenario. Below is a recent successful Rehab project that may be of interest to you.
The Subject:
- Address: 52744 Contour Terrace, Pioneertown, CA 92268
- Type: Single Family Residence
- Original Layout: 2 BR/1 BA
- Proposed Layout: 2 BR/5 BA
- Condition: Poor, Dilapidated
The Scenario:
- Subject was a dilapidated SFR on 2.5 acres – quite literally, everything needed to be repaired or replaced
- Our borrower was a Foreign National architect & interior designer with a new found passion for the California desert
- The subject property had been neglected, was in very poor condition and needed to be gutted
- Electrical wires and poles obscured the beautiful mountain and desert views
The Solution:
- The borrower’s broker contacted Mortgage Vintage, Inc.
- MVI provided an 47% LTV 1st TD based on the ARV for the borrower to cover the rehab cost
- Borrower received plan approvals and building permits for the rehab project from the city and county
- With MVI funds secured, the borrower went to work on bringing his vision to life
- Using the same square footage the investor had the home converted to a 2BR/2.5BA featuring a spa and cowboy tub
- In a brilliant move to make the most of the views, the investor had all of the electrical wires on the property buried and poles removed
The Numbers:
- As Is Value: $140,000 or $122/SF
- Rehab Cost: $220,000
- After Repair Value: $650,000 or $568/SF
- Loan Type: MVI Business Purpose Cash-out Rehab Loan