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