After a longer wait than normal, my partner found a new hard money loan to roll over the principal from HML #15 into. The new property is a 3 bed, 1 bath single family home in San Leandro, California, built in 1942. The borrower bought the property at auction for $194,000. Our loan is for $143,700. After fix up value of the property is between $231,000 and $260,000. Using the lower number gives us a LTV of 62%.
The house is on a big lot. The house itself is on the smaller side – about 900 square feet. Inside condition is unknown. Two comps sold recently for $255,000 and $270,000. I’m getting 9%, interest only payments. Note due in one year. The borrower is my partner’s biggest client and always pays his bills early. He does this for a living and has 10 employees or more. He buys about 1 property a day and closes on about 1 a day. He also is personally guaranteeing the loan.