Purchase Money Trust Deed
We just sold a $90,000 1st Purchase Money Trust Deed for a nice tract home in Desert Hot Springs, CA. The yield was 10.99% for 3 years, with 6 months interest guaranteed. This loan was very attractive because it was essentially a non-arms length (step-son to Aunt) loan, where the home had belonged in the family for the past five years. The same family had been in the house for five years and showed proof that they had made all payments on time. The exit strategy is for the tenant to accumulate more time at his new job until he can safely refinance the property himself through a conventional bank.
- Loan Request: $90,000
- Loan to Value: 55%
- Rate: 10.99%
- Yield: 10.99%
- Type of Property: SFR
- Term: 1 year
- Interest Guaranty: 6 mos.
- Appraised Value: $163,000
- Condition of Property: Above Avg
- Rental Income: $1200.00
