Everyone comes out a winner when local flipper/contractor takes advantage of new ADU zoning laws:
- $269,500 1st Trust Deed
- 70% LTV on $385k Purchase Price
- 9.50% Lender Rate
- 12-month – Fix & Flip Loan
- $139k Borrower Profit
- MVI funds in 6 business days
This dilapidated Santa Ana residence was in bad condition and reflecting poorly on the well established surrounding community. Due to recent zoning changes made by the City of Santa Ana, major improvements would soon come to this property, and, in turn, the neighborhood around it.
An experienced local flipper/contractor was aware of the new zoning laws in Santa Ana allowing for Additional Dwelling Units on lots over a certain size. The subject property lot being 7,700 SF, the borrower saw a fantastic opportunity to add square footage to the original existing home of 797 SF. Not only that, the borrower also added an Additional Dwelling Unit in the back and increased the garage footprint from 360 SF to 441 SF.
Many real estate investors competed for this property when it hit the market. Having successfully worked with the borrower in the past, Mortgage Vintage was able to assure the agent of a fast close and then fund the purchase loan in just 6 business days. The remodeled property with multiple rental revenue opportunities (2 units) was subsequently purchased by a real estate investor seeking yield. We love these loans that have far reaching positive impact: borrower, lender, new home owners as well as the surrounding neighborhood!
The Subject:
- Address: 1925 Orange St., Santa Ana, CA
- Type: Single Family Residence
- Layout: 4 BR/2 BA
- Condition: Poor, Dilapidated
The Scenario:
- A dilapidated residence in poor condition
- This property was in a well established community
- New zoning changes allowed for major improvements
The Solution:
- The experienced local flipper/contractor contacted Sandy at Mortgage Vintage, Inc.
- MVI provided an 70% LTV 1st TD for the borrower to acquire the property plus add an Additional Dwelling Unit
- Fast close was provided in 6 days so the flipper could compete to win this property
- With MVI funds secured, the borrower went to work and transformed the property and added an ADU and increased the garage footprint
- Fast Funding Based on Committed Terms
- The remodeled property with multiple rental revenue opportunities (2 units) was subsequently purchased by a real estate investor seeking yield
The Numbers:
- Purchase Price: $385,000
- Net Profit: $139,000
