Closed Loans

San Diego, CA, July 15, 2010.  The Loan Company of San Diego provided a $150,000 loan commitment (1st Trust Deed) allowing the borrower to purchase a bank owned (REO) single family residence non-owner occupied. The purchase price for the 1,051 sq.ft. 3BR/ 2BA (two car garage with swimming pool) was $179,900. The borrower will be remodeling the house then resell the property upon completion as the exit strategy. The borrower’s remodel budget was $15,000 for a total cost of $194,900 or 77% LTC. The Loan Company provided $135,000 initial disbursement with a $15,000 holdback disbursed upon completion of the improvements.  The sales comps easily support a conservative sales market approach to value of $250,000 upon completion of remodel or a 60% LTV ratio.  The Loan Company provided the borrower an excellent bridge loan with a competitive private money rate for 12 months. 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.