A seasoned spanish-speaking real estate couple sought a business-purpose 1st Trust Deed loan to add to their growing rental portfolio.
- Mortgage Vintage Loan at 65.00% LTV on Purchase Price Value of $895,000
- 7.00% Annualized Lender Rate
- 6 Months Guaranteed Interest
- Loan structured at 59.67% LTV on BPO Value of $975,000
- Over $330,000 down payment from the borrower
Originally a well-maintained California bungalow, this property in Placentia, CA, quickly became a valuable addition to an established real estate portfolio, showcasing the power of strategic investment. Spanning 1,440 square feet, this charming single-family residence features three bedrooms and two bathrooms, nestled on a spacious 7,500 square foot lot. With its ideal location near HWY 99, schools, shopping, dining, and entertainment, the property held significant promise for generating consistent rental income.
A savvy Hispanic couple, seasoned real estate investors with several rental properties, recognized the untapped potential of this home. Despite the property’s excellent condition and desirable features, the couple faced challenges securing a conventional loan due to their stated income on tax returns. To overcome this, they opted for a Business Purpose 1st Trust Deed (TD) purchase loan, allowing them to swiftly close the deal and add this property to their rental portfolio.
The financial strategy was meticulously planned: the loan was structured at 65.00% LTV on a purchase price of $895,000, with a BPO value of $975,000, and featured six months of guaranteed interest with a 7.00% annualized return. This prudent approach ensured a sound investment with minimal risk, safeguarded by over $330,000 in down payment and a strong exit strategy through a conventional refinance.
Key financial highlights of this investment include its robust LTV ratios, an impressive 7.00% annualized return, and the security of six months of guaranteed interest. The property, now part of a thriving rental portfolio, stands as a testament to the couple’s strategic foresight and dedication to expanding their real estate investments.
Through careful planning and strategic financing, this Placentia bungalow, purchased as-is, has solidified its position as a reliable and profitable asset in a competitive rental market.
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.