Mortgage Vintage, Inc. (MVI) offers hard money loans for real estate investors seeking to expand their portfolios with sound, strategic investments. We take pride in supporting our clients’ goals, helping them unlock the full potential of their properties. Our recent work with a seasoned Spanish speaking couple on this Placentia, CA, property is a perfect example of how strategic financing can lead to a successful investment outcome.

The Subject:

  • Property: 1814 Browerwoods Pl., Placentia, CA 92870
  • Type: Single-Family Rental Investment Property
  • Layout: 3 Bedrooms, 2 Bathrooms, 1,440 Sq Ft
  • Condition: Turn-key, purchased as-is with no additional renovations required

The Scenario:

A seasoned Spanish speaking couple, already owning several rental properties, identified this charming California SFR as the ideal next addition to their real estate portfolio. Despite the property’s excellent condition and desirable features, the couple faced difficulties securing a conventional loan due to their stated income on tax returns. Recognizing the investment potential, they sought our assistance to secure the necessary funds to close the deal.

This property, strategically located near Imperial Hwy 90, schools, parks, shopping, dining, and entertainment, offered a perfect opportunity to generate consistent rental income. With median rents in the area at $3,315 per month, the couple was keen to finalize the purchase and capitalize on the property’s potential.

The Solution:

The couple opted for a Business Purpose 1st Trust Deed (TD) purchase loan, structured at 65.00% LTV on the purchase price of $895,000, with a BPO value of $975,000. The loan featured six months of guaranteed interest and a 7.00% annualized return to investors, providing both security and profitability for the investors. With over $313,175 down payment and a strong exit strategy through a conventional refinance, the financial plan was sound and well-structured.

Financials:

  • Loan Amount: $581,825
  • Appraised Value: $975,000
  • Monthly Rental Income (Estimated): $3,315
  • LTV on Purchase Price: 65.00%
  • LTV on BPO Value: 59.67%
  • Annualized Investor Return: 7.00%
  • Down Payment: $330,000+

Highlights:

This trust deed opportunity was particularly compelling due to:

  • Prime Location: A desirable neighborhood with proximity to key amenities.
  • 7.00% Annualized Return: Attractive yield for investors.
  • Strong LTV Metrics: 65.00% on purchase price and 59.67% on BPO value.
  • Significant Down Payment: Over $313,175, reflecting the borrowers’ commitment.
  • Six Months Guaranteed Interest: Providing security for lenders.
  • Strategic Exit Plan: A conventional refinance ensures a clear exit strategy.

Through meticulous planning and strategic financing, this Placentia rental SFR was successfully added to a growing rental portfolio for the borrowers, proving once again the value of partnering with Mortgage Vintage, Inc. for real estate investments.