Category Archives: 2016 Closed Loans

$740,000, Purchase, Gas Station

 Oceanside, CA, Borrower was able to leverage adjacent property owned to reduce cash equity required. A repeat borrower of The Loan Company was looking to purchase the vacant restaurant next to his existing gas station, which was going to be used to expand the gas station by adding 4 additional pumps. The purchase price for the subject property was $629,000 and required $174,000 to convert the restaurant into an expansion of his existing gas station. Considering the borrower’s existing gas station had sufficient equity, the borrower was able to offer the real estate (excluding the business) as additional collateral, which is valued at $2,250,000 (existing 1st Trust Deed of $670,000).  The Loan Company was able to structure a $740,000 1st Trust Deed term loan on the subject property and a 2ndTrust Deed on the gas station, for a total collateral value of $2,879,000 or 49% combined LTV. The borrower’s exit strategy is to eventually refinance with a conventional lender. The Loan Company provided the borrower with an excellent term loan at a competitive private money rate and terms.

 

$336,000, Purchase, Multi-Family

San Diego, CA, The Borrower needed a Lender who could move quickly in providing a higher leveraged loan to purchase an undervalued 4 units consisting of a single family investment house 3BR/1.5BA (detached) in front, 2 – 1BR/1BA units (one building) and another single family investment house 1BR/1BA (detached) in the back all on one lot located in the North Park community of San Diego. To be flexible and creative, The Loan Company, provided a higher loan to purchase price than is typically accepted due to the property being so undervalued at acquisition.  The purchase price was $420,000 or 80% LTC. However, considering the actual purchase price was well under market value and conservatively in the range of $520,000 or 68% LTV ratio, the Loan Company provided a $336,000 loan commitment, in time to meet the borrower’s deadline, secured by a 1st Trust Deed on the subject property. The borrower intends to completely remodel the property adding considerable value to the property giving it a conservative future value in the range of $750,000. The exit strategy is to sell the property upon the remodel. The Loan Company provided the borrower an excellent short term loan at a competitive private money rate.

$155,000, Refinance, Office

 

Escondido, CA. The borrower, an engineer, was referred to The Loan Company by a local bank to refinance a maturing note on his owner/user office building. Although the engineering firm has been profitable in its most recent financial reporting period, historical losses in previous periods prevented the bank from considering the refinance. After assessing the current cash flow and subject collateral, The Loan Company was able to provide the borrower with a $155,000 1st Trust Deed loan secured by the 5,405 sq. ft. two-story office building on a 10,413 sq. ft. lot, which has an estimated value of $620,000 or 25% LTV. The debt service on the 5-year note will be sufficiently covered by the business cash flow, which calculates to a 1.79x DSCR. The Loan Company provided the borrower an excellent term loan in a relatively short period of time with a competitive private money rate.

$370,000, Refinance Cashout, Mixed Use

 

Chula Vista, CA.  A real estate investor with a mixed used investment property was referred by a loan broker who regularly refers clients to The Loan Company. The borrower needed to follow a court order to remove an existing co-borrower from the existing mortgage prior to a deadline set by the court, which was just weeks away.  The Loan Company was able to move quickly and fund a $370,000 1st Trust Deed bridge loan secured by a non-owner occupied 3BR/2BA 976 sq. ft. SFR in front and a 3,000 sq. ft. warehouse in the back of the property. Current rents generate an annual NOI of $29,700 and with a 6% CAP rate, the property is estimated to be valued at $495,000 or 75% LTV. The exit strategy is to refinance the subject loan with a conventional lender within 12 months. The Loan Company provided the borrower an excellent bridge loan at a competitive private money rate.

$640,000, Purchase, SFR Investment Property

 

Mission Viejo, CA. A borrower was purchasing an existing going concern licensed 6 bed residential care facility operated in a single family residence. The property consisted of 6BR/2BA, 2,601 sq. ft. residence on an 8,625 sq. ft. lot and was being purchased for $900,000 total cost ($800,000 real estate and $100,000 business). The borrower was in process of getting a SBA loan, but needed to close on the purchase sooner than the SBA loan could be funded. The Loan Company was able to close quickly to meet the deadline and provide the borrower additional leverage by structuring a $640,000 loan for the real estate only secured by a 1st Trust Deed on the subject property, and also as additional collateral a 2nd Trust Deed on another investment property owned by the borrower for a combined overall LTV ratio of 62%. The Loan Company provided the borrower with an excellent term loan prior to the close of escrow with a competitive private money rate.

$1,120,000, Construction, Two SFR’s

San Diego, CA. The borrower purchased two adjacent parcels (vacant lots) in 2015. The borrower, working with a bank to finance the construction costs, was strung out for over two months when the bank ultimately was unable to perform and fund the loan as promised. Unable to continue to hold back construction, the borrower began grading the lots while seeking out a new lender that could immediately step in and provide a construction loan to complete two speculative three story homes, each with approximately 2,344 sq. ft., 3BR/3.5BA and 2-car garage for a combined total cost of $1,524,538 (hard & soft costs). The Loan Company picked up where the other lender fell short and provided a $1,120,000 (1st Trust Deed) construction loan for both houses, a LTC of 73%. At completion, sales comps in the area support a $1,045,000 value range per house or 54% LTV ratio. The Loan Company provided the borrower an excellent construction loan at a competitive private money rate.

 

$850,000, Refinance, SFR Investment Property

  

San Diego, CA.  October 31, 2016. A new borrower, referred to The Loan Company by an existing borrower, needed to quickly refinance a loan that was maturing within 10 days and also pull out some cash to finish the remodel of his SFR investment property with bay and ocean views. The Loan Company was able to move fast and provide the borrower a 1st Trust Deed $850,000 bridge loan. The exit strategy is to finish the remodeling within the next 30 days and immediately put the property on the market in the $2,000,000+ range or 43% LTV. The Loan Company provided the borrower an excellent bridge loan in a timely fashion at a competitive private money rate.

$1,180,000, Construction, Two SFR’s

San Diego, CA. A repeat borrower of The Loan Company purchased a residential vacant lot with a slope, which presented some design challenges. Plans are to build non-owner occupied tri-level SFR, to easily incorporate the slope, with a companion unit and a granny flat for resale. The lot was purchased for $490,000 and construction costs are $1,100,000 ($1,590,000 total costs) to build a 2,707 sq. ft. 2BR/2BA main home with a 632 sq. ft. 1BR/1BA companion unit and a 337 sq. ft. granny flat/studio with 1BA. Total habitable square footage is 3,676. The Loan Company provided a $1,180,000 (1st Trust Deed) construction loan or 74% LTC. At completion, sales comps in the area conservatively support a $2,000,000 value range or 59% LTV ratio. The Loan Company provided the borrower an excellent construction loan at a competitive private money rate.

$303,000, Purchase, Multi-Tenant Retail/Office

El Cajon, CA. The borrower, an experienced real estate investor and businessman, was referred to The Loan Company by a broker to assist in the purchase of two detached single story retail/office buildings that total 2,700 sq.ft. on a 6,534 sq. ft. lot. The purchase price was $405,000 and the borrower needed to close within 2 weeks. The Loan Company was able to act quickly and provide the borrower a $303,000 1st Trust Deed loan or 75% LTC. The exit strategy is to increase the existing month-to-month leases to market, season the new leases for 12 to 18 months, then refinance with a conventional lender. The Loan Company provided the borrower an excellent term loan in a relatively short period of time with a competitive private money rate.

$626,000, Purchase, 6-Unit Residential

Escondido, CA,  A loan broker that regularly refers clients to The Loan Company, reached out on behalf of his client in desperate need to close fast. Towards the end of an already extended escrow and in a 1031 exchange, his client’s bank denied the loan because of some deferred maintenance leaving only 3 weeks to close on a $1,135,000 purchase of a 6-unit residential property. The Loan Company was able to quickly structure a $626,000 loan with a $100,000 holdback (to be disbursed as a percentage of completion) to be used towards the estimated $100,000 needed in repairs for a total LTC of 51%. Upon completion of the repairs, which would result in an increase in the NOI, the subject property is estimated to be valued at $1,400,000 or 45% LTV. The borrower’s exit strategy is to remodel the subject property, increase rents, then refinance the property with a conventional long term lender.  The Loan Company provided the borrower with a short term bridge loan in a short period of time at a competitive private money rate.