First Trust Deed collateralized by a 3,010 square foot home in Shoreline, WA (approximately 13 miles north of Seattle, WA). Comps in the area sell for an average of $800,000 with homes directly across the street selling for more than $1,000,000. The borrower is able to acquire the property for significantly under market value do to the seller needing to sell the home quickly. With that said, it is the borrower intents to spend approximately $40,000 in repairs to rehab the property in order to better position the asset to demand a higher sales price. Repairs are anticipated to take two months of the six month loan. The other four months of the loan term will be used to procure a buyer and get the property closed. Although the borrower will not be adding any space to the home or changing the bedroom count (4 beds, 2.5 baths), most of the money will be used to renovate the kitchen, baths, master bedroom, and flooring throughout the property.
Loan Amount: $587,000
Yield: 10.25% (Principal Balance ≥ $100,000); 10.00% (Principal Balance < $100,000) Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Six months with no additional extensions.