Category Archives: 2015 Closed Loans

2015 Closed Loans

$555,000, Purchase, Residential Duplex

San Diego, CA. The borrower found an investment opportunity for $600,000 (residential duplex in the North Park area of San Diego). The property currently consists of a 1BR/1BA unit on each floor and a detached double garage. The borrower having owned and operated several Laundromats, had the vision to convert the first floor into a Laundromat and remodel the second floor into a 2BR/1BA residence significantly increasing potential rental income. The Loan Company was creative in structuring a quick loan to help the borrower acquire the property with additional funds to remodel the subject property, thus creating added value. The Loan Company made a $555,000 (1stTrust Deed) loan commitment with the initial disbursement of $420,000 (70% of the purchase price). The remodel will require a budget of $135,000 to complete for a total cost of $735,000 or a 75% LTC. The $135,000 was held back in the loan to be disbursed to the borrower subsequent to the completion of the improvements. Upon completion of the improvements, the Laundromat and upstairs unit is expected to increase the value to $919,000 (based on the Income Approach to Value), which results in an LTV of 60%. The Loan Company provided the borrower an excellent term/rehab loan with a competitive private money rate.

$247,500, Re-finance, SFR Investment Property

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San Diego, CA.  After purchasing a 1,395 sq.ft. non-owner occupied single family residence on a 6,000 sq.ft. lot for $330,000 all cash in November 2015, a repeat borrower requested a refinance loan (Cash Out) to replenish his liquidity for other investment opportunities. The Loan Company quickly assessed the situation and was able to provide a $247,500 1st Trust Deed loan or 75% of the purchase price. The Borrower budgeted $25,000 towards improving the property and upon completion of the improvements, a value of $390,000 is estimated or 63% LTV. The exit strategy will be to immediately sell the property upon completion of the improvements. The Loan Company provided the borrower an excellent refinance loan (Cash Out) at a competitive private money rate.

$412,500, Purchase, SFR Investment Property

San Diego, CA.  The borrower approached The Loan Company needing to quickly close within 7 days on a purchase of a detached duplex, non-owner occupied residential investment property for $550,000 in the community of North Park. The borrower has budgeted $80,000 towards the remodel and re-landscaping of the property to increase its curb appeal, then resell the duplex immediately for repayment of the loan. The Loan Company provided a $412,500 bridge loan secured by a 1st Trust Deed in time to meet the borrower’s deadline, resulting on a 75% LTV on the purchase price. Value upon completion of the remodel of the duplex is in the $675,000 range or 61% LTV ratio. The Loan Company provided the borrower an excellent bridge loan at a competitive private money rate.

 

$2,400,000, Re-finance, Construction of 13 Luxury Apartments

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 San Diego, CA. A borrower purchased and remodeled an existing duplex on an over sized lot in the community of Hillcrest with the help of The Loan Company. Subsequently, the borrower decided to redevelop the infill site keeping the existing duplex and constructing 11 luxury apartment units around the existing duplex (2 units). The result will be a three story building with a total of 13 luxury apartment units. The borrower needed a flexible lender that could think outside the box. The Loan Company provided a $2,400,000 construction loan secured by a 1st Trust Deed. The loan was structured to accommodate the existing duplex financing and was cross collateralized with another property to get the leverage the borrower needed. An appraisal concluded a market value for the 13 units at stabilized occupancy of $4,750,000 or 65% combined LTV ratio. The exit strategy for the borrower is to sell the project upon completion and at stabilized occupancy. The Loan Company provided the borrower (an owner/builder) an excellent construction loan at a competitive private money rate.

$600,000, Purchase, Mixed-Use Investment Property

Spring Valley, CA. A real estate investor had an opportunity to acquire a mixed-use income property with a lot of upside potential on a large, one acre parcel. However the borrower lacked the initial liquidity to finalize the purchase. The Loan Company was creative in solving the problem by cross collateralizing (1st Trust Deed) on another of the borrower’s properties where a lot of his cash was tied up. The Loan Company made a $600,000 loan to purchase 8 residential units and 2 industrial/commercial units for $645,000. The income currently generated from the property services the debt. The combined LTV ratio was 61% including both 1st Trust Deeds on all the collateral. The borrower’s plan was to renovate the existing improvements and increase the rents and thus the value of the property. The exit strategy for the borrower is to sell the one cross collateralized property and pay down the subject loan then refinance with a conventional loan. The Loan Company provided the borrower an excellent term loan with a competitive private money rate. The borrower was extremely pleased that he was able to acquire the property that had so much upside potential with little cash down.

 

$1,900,000, Refinance, Multi-tenant Office Building

 

San Diego, CA  The borrower came to The Loan Company through a reputable mortgage broker looking to refinance an existing loan that had just matured and needed a loan immediately to avoid a Notice of Default (NOD). The Loan Company made a $1,900,000 loan commitment secured by a 1st Trust Deed on a two story, 33,155 sq. ft. multi tenant office building in the Miramar area. The subject property had a 30% vacancy, which limited the borrower’s ability to achieve traditional financing. The Loan Company was creative and quickly structured a loan to help the borrower avoid a NOD by cross collateralizing the loan with a 1st Trust Deed on two other investment properties. All three secured properties resulted in an overall LTV ratio of 29%. The exit strategy for the borrower is to achieve stabilized occupancy within the subject property, then to refinance with a conventional loan. The Loan Company provided the borrower an excellent term loan with a competitive private money rate. The borrower is extremely pleased that he was able to avoid a NOD and obtain a loan in a matter of weeks.

$450,000, Purchase, SFR Investment Property

Carlsbad, CA  Five days before the close of escrow, the borrower’s previous lender informed him that they were unable to finance the $634,500 purchase of a non-owner occupied single family residence in Carlsbad. After receiving the bad news, the borrower was referred to The Loan Company for their reputation to act quickly. The Loan Company immediately assessed the loan request and within 5 days funded a $450,000 bridge loan or 71% LTV, secured by a 1st Trust Deed. The Loan Company provided the borrower an excellent bridge loan at a competitive private money rate.

$785,000, Purchase, SFR Investment Property

San Diego (Santaluz), CA The borrower needed financing to quickly move on a purchase of a non-owner occupied single family residence for $1,115,000. The borrower plans to remodel the property to add value, then resell the home immediately for repayment of the loan. The Loan Company provided a $785,000 bridge loan secured by a 1st Trust Deed in time to meet the borrower’s deadline. Value upon completion of the remodel is in the $1,450,000 range or 54% LTV ratio. The Loan Company provided the borrower an excellent bridge loan at a competitive private money rate.

$600,000, Re-Fi, SFR-Rehab Investment Property

Point Loma, CA October 29, 2015.  The borrower purchased the SFR non-owner occupied 3,208 sq. ft. investment property, which is just blocks from the beach. The 6BR/4BA home sits on a 6,900 sq. ft. lot and is in need of a major remodel. The improvements include remodeling the entire house, removing then rebuilding the back garage in the alley way as well as improving the views of the ocean from the second and third floors. The borrower came to The Loan Company seeking a bridge loan of $600,000 to close escrow quickly on the $800,000 purchase or 75% LTV. The borrower will fund the cost of improvements, which is estimated at $300,000 for a LTC of 55%. Value upon completion of the remodel is in the $1,355,000 range or 44% LTV. The Loan Company provided the borrower an excellent bridge loan at a competitive private money rate.

$325,000, Re-Fi, SFR-Rehab Investment Property

La Mesa, CA  The borrower previously purchased an older single story 2BR / 1BA home on a large 12,632 sq. ft. lot. Wanting to rehab and add additional square footage to the non-owner occupied single family residence, The Loan Company provided a $325,000 (1st Trust Deed) rehab loan refinance. Initial funding was at $235,000 (70% loan to cost) with a loan holdback of $90,000 for the remodel costs. The borrower will convert the home to a 4BR / 3BA home and increase its overall square footage by 928 sq. ft. The remodel of the property will increase its curb appeal allowing the borrower to resell the home immediately for repayment of the loan. Value upon completion of the remodel is in the $500,000 range or 65% LTV ratio. The Loan Company provided the borrower an excellent rehab/bridge loan at a competitive private money rate.