Closed Loans

San Diego, CA, The Loan Company of San Diego financed a $255,000 loan for the purchase of four+ multi-family residential units (bank owned).  The property consisted of four permitted apartment units and one unpermitted unit with approximately 2,282 total rentable sq.ft. on a 7,000 sq.ft. lot with four single car garages at the rear of the property with access from the alley.  The units consisted of one 1BR/1BA unit and one 2BR/1BA unit in a detached house fronting the street.  The other two (legal) units are 1BR/1BA units in two separate cottages in the rear of the property along with the four garages.  The unpermitted unit is a studio attached to one of the rear cottages that will be rented as additional room/storage. There is a courtyard between the detached house and the two cottages in the back yard.  The purchase price was $276,000 with an initial loan disbursement of $206,250 or 75% of the purchase price and a $48,750 holdback disbursed once improvements were completed.  The borrower rehabbed the property and put approximately $60,000+ in improvements for a total cost of $335,000 or 76% total LTC. The exit strategy for The Loan Company is a conventional takeout loan.  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.