Closed Loans

 

 

San Diego, CA, September 29, 2009.  The Loan Company of San Diego financed a $175,000 loan for the purchase of four, 1BR/1BA apartment units on a 4,770 sq.ft. lot in San Diego.  There were 8 parking spaces on site with easy access to each unit.  The property was a bank foreclosure and was purchased for $206,000.  The borrower rehabbed the property and put approximately $20,000+ in improvements for an approximate cost of $228,000 or 76% LTC.  The subject loan had an initial hold back of $19,000 disbursed once improvements were completed and the four units leased at proforma rents. The income approach to value was conservatively estimated at $250,000 or 70% LTV.  The exit strategy for The Loan Company is a conventional takeout loan.  Once the borrower gets the property improved and stabilized, it will be refinanced with conventional financing.  The borrower was extremely pleased with The Loan Company’s ability to move fast, making it easy to finance the purchase with competitively priced private money financing (9% interest, 3 year term, 30 year amortization).  For a stronger position, The Loan Company also took a 2nd Trust deed on another of the borrower’s income properties as additional collateral.