Closed Loans

 

 

San Diego, CA, June 9, 2010.  The Loan Company of San Diego provided a $120,000 loan commitment (1st Trust Deed) allowing the borrower to purchase a bank owned single family residence non-owner occupied. The borrower purchased the 850 sq.ft. 1 BR/ 1BA, (with a partial basement) and a two car garage for $130,000. The borrower will be remodeling the house into a 2BR/1BA and resell upon completion as the exit strategy. The borrower’s remodel budget was $30,000 for a total cost of $160,000 or 75% LTC. The Loan Company provided $105,000 initial disbursement with a $15,000 holdback disbursed upon completion of remodel.  Using a conservative sales market approach to value of $200,000 upon completion of remodel resulted in a 60% LTV ratio.  The Loan Company provided the borrower an excellent bridge loan with a competitive private money rate (8.90%). The borrower was extremely pleased with The Loan Company’s ability to move fast and hassle free, allowing the borrower the flexibility and speed to compete in the competitive bidding process for bank owned properties.