Category Archives: 2014 Closed Loans

$5,300,000, Purchase, Commercial Investment Property

San Diego, CA, The Loan Company of San Diego provided a $5,300,000 loan commitment to purchase the Travelodge in Mission Valley (1st Trust Deed). The borrowers were in a 1031 exchange and timing was critical to close on the acquisition by a specified date. The purchase price was $9,000,000 with the borrower coming in with over $3.7 million dollars in cash to close or 41% of the total cost. The transaction required a lender that could think outside the box and use some creativity and flexibility to make it happen. The closing was plagued by several issues including: an appraisal that came in lower than expected, a short term below market operating lease, a parcel of land under a small portion of the Travelodge improvements was not part of the current purchase and not all of the selling interest could be conveyed by the closing date.

To overcome these obstacles, The Loan Company used a common sense underwriting approach and cross collateralized the loan with another property and created a hold back from a portion of the loan commitment to purchase the remaining seller’s interest at a later date. It was a win-win scenario for both the lender and the borrower. The combined LTV ratio was 69%. The borrower’s exit strategy is to refinance with a conventional lender within the next 12 months. The Loan Company provided the borrower an excellent short term loan at competitive private money rate and terms.

$550,000, Purchase, Investment Property

San Diego, CA.  The borrower was in a 1031 exchange escrow to purchase an investment property on a quick close and The Loan Company was able to move fast and provide the financing needed in time to meet the deadline. The Loan Company of San Diego provided a $550,000 loan (1st Trust Deed) to purchase one single family non-owner occupied house. The Loan Company provided funding on a purchase price of $1,400,000 or 39% LTC. The house is in excellent condition and will be used as a vacation rental property. It has a full entertainment bar, in-built movie theatre and a boastful wine cellar. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate. The borrower will obtain conventional financing and refinance the subject loan as the exit strategy.

$350,000, Purchase, Multi-family Investment Property

San Diego, CA, The Borrower needed a Lender that could move quickly in providing a multi family investment property loan (value added loan) to purchase a four-plex, non-owner occupied, property with good upside potential on a desirable street corner location in San Diego. The Loan Company provided a $350,000 loan commitment, in time to meet the borrower’s deadline, secured by a 1st Trust Deed. The Loan Company funded $350,000 or 71% loan to original purchase price ($490,000). The borrower intends to do a minor remodel to the existing four-plex and bring rents to market levels, thereby increasing the asset to an estimated value of $550,000 or 64% LTV. The exit strategy upon completion of the remodel is to refinance the units. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate.

$500,000, Purchase, Multi-family Investment Property

San Diego, CA, The Borrower needed a Lender that could move quickly in providing a value added loan to purchase a multi family non-owner occupied duplex with excess developable land ( separate APN #s ) on a great street location in South Park. The Loan Company provided a $500,000 loan commitment, in time to meet the borrower’s deadline, secured by a 1st Trust Deed. The borrower intends to completely remodel the existing duplex and then sell if off at a marketable price of $450,000 +.  At the same time, the borrower intends to obtain building permits for 2 additional single family homes that can be built on the excess land. The exit strategy upon completion of the remodel is to sell of the duplex and obtain a construction loan to include the development of the 2 additional SFR houses on the excess land. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate.

 

$311,000, Purchase, SFR Investment Property

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El Cajon, CA,  The borrower needed a reliable source of funds to purchase a single family non-owner occupied residence (a fixer-upper) in a great location in the Grossmont College area of El Cajon, and needed a quick close. The Loan Company provided a $311,000 short term loan secured by a 1st Trust Deed in sufficient time to meet the borrower’s deadline. The purchase price was $415,000 (75% loan to purchase price). The borrower intends to remodel the house at an approximate cost of $50,000 for immediate resale as the exit strategy. Value upon completion is in the $550,000 range or 57% LTV ratio. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate.

$236,000, Purchase, SFR Investment Property

2545 Crestline Dr, Lemon Grove, CA

Lemon Grove, CA, The borrower needed a reliable source of funds to purchase a single family non-owner occupied residence (a fixer-upper) in a great location in the Lemon Grove area and needed a quick close. The Loan Company provided a $236,000 short term loan secured by a 1st Trust Deed in sufficient time to meet the borrower’s deadline. The purchase price was $315,000 (75% loan to purchase price). The borrower intends to remodel the house at an approximate cost of $60,000 for immediate resale or refinance as the exit strategy. Value upon completion is in the $425,000 range or 56% LTV ratio. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate.

$780,000, Purchase, SFR Investment Property

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Pacific Beach, CA, The borrower needed a purchase rehab/construction loan, for the acquisition and major rehab of a single family non-owner occupied house on a great street location in Pacific Beach. The Loan Company provided a $780,000 loan commitment (simplifying the process with an all-in-one loan), in time to meet the borrower’s deadline, secured by a 1st Trust Deed. The purchase price was $765,000, initial funding was $573,000 or 75% loan to purchase price on the initial disbursement with a $207,000 holdback for the construction improvements to be disbursed on a percentage of work completion basis. The borrower intends to completely remodel the house by retaining most of the foundation and current framework walls, and building up two more stories, including a roof top deck, which will result in another 1400 sq.ft to make this a 2,400 sq.ft. house (5BR/3BA). The exit strategy is to immediately sell the property. Value upon completion is in the $1,200,000 range or 65% LTV ratio. The Loan Company provided the borrower an excellent short term dual purpose loan at a competitive private money rate.

$378,000.00, Purchase, Multi-Family Investment Property

San Diego, CA, The Borrower needed a Lender that could move quickly to purchase a multi family non-owner occupied triplex on a great street location in San Diego. The Loan Company provided a $378,000 loan commitment in time to meet the borrower’s deadline, secured by a 1st Trust Deed. The borrower intends to spend about $30,000 to remodel and bring rents to market levels on all  three units and after the remodel value is estimated to be $600,000 or 63% LTV. The exit strategy is to stabilize the property and then secure conventional financing. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate

$340,000.00, Purchase, Multi-Family Investment Property

Escondido, CA, The Borrower needed a Lender that could move quickly to purchase a multi family non-owner occupied triplex on a great street location in Escondido. The Loan Company provided a $340,000 loan commitment, in time to meet the borrower’s deadline, secured by a 1st Trust Deed. The borrower intends to bring rents to market levels on all of three units and stabilize the property to an estimated value of $585,000 or 58% LTV. The exit strategy is to stabilize the property and then secure conventional financing. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate.

$445,000.00, Refinance, Commercial Property

San Diego, CA, The Borrower needed a Lender that could appreciate the value of the owner-occupied commercial real estate on a great street location in San Diego. The borrower had an existing loan which he wanted to refinance at a good rate and also get some cash out for other business purposes. The Loan Company provided a $445,000 loan commitment, secured by a 1st Trust Deed. Using market rents and a market cap rate, the property has an estimated value of $690,000 or 65% LTV. The exit strategy is to secure conventional financing at a later date. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate.