Closed Loans

San Diego, CA, July 15, 2010.  The Loan Company of San Diego provided a $169,000 loan commitment (1st Trust Deed) allowing the borrower to purchase a bank owned 2BR/1BA, 800 sq.ft. single family residence non-owner occupied on a 5,600 sq.ft. lot.  The purchase price for the home was $169,000. The borrower will be remodeling the house adding another bedroom and bathroom to make it a 3BR/2BA putting approximately $60,000 in improvements for a total cost of $229,000. The Loan Company was able to be aggressive with the loan amount for 100% of the purchase price due to the borrower putting up additional collateral as security, besides the subject property, providing sufficient equity to be less than 50% LTV overall.  As well as being a repeat customer of The Loan Company. The exit strategy is to remodel the home and sell within 6 months. The sales comps easily support a conservative sales market approach to value of $300,000 upon completion for the subject property.  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.