LOW LOAN TO VALUE REHAB LOAN IN DUARTE – 10% YIELD!!!
We just sold a $100,000 1st Refi Trust Deed for a fixer home in a nice area of Duarte, CA. The yield was 10.5% for 1 year, with 6 months interest guaranteed. This loan was very attractive because of the low loan-to-value (29%), based upon its current condition. Upon completion of the rehab, the loan to value will be closer to 20%. The exit strategy to pay off the investor is to list the home and sell it. It is a rehab loan. Borrowers are both licensed contractors and have owned this home as a rental for seven years prior to now.
- Loan Request: $100,000
- Loan to Value: 29%
- Rate: 10.0%
- Yield: 10.5%
- Type of Property: SFR
- Term: 1 year
- Interest Guaranty: 6 mos.
- BPO Value: $375,000
- Condition of Property: Fair
- Rental Income: $1900.00
