Trust Deed Investment Opportunity - Seeking a Fractional Interest of 50% for $75,000 on a 5 Year, 8.5% APY. 

Transaction Synopsis: Borrower is seeking a rate & term loan to acquire an inherited property.

Subject property consists of a single level, end unit Condominium with 2 bedrooms, 2 bathrooms totaling 949 Sq. Ft GLA, originally built in 1985. Parking consists of two dedicated spaces: (1) a single space detached garage separated by an atrium, plus (2) a single space car port. Subject is located in the county of Orange, city of Irvine.

Borrower inherited subject property from deceased mother. Subject is encumbered with both a first and second mortgage which are assumable, but under prime credit guidelines. Borrower is required to retire exiting liens, as there is a due on sale clause triggered by inheritance. Borrower is unable to qualify under assumption as borrower is enrolled in a credit remediation program.

Risk: Borrower ineligible for conventional financing until credit remediation program is completed and credit score improves.

Compensating Factors: Subject in good condition with positive cash-flow and a low LTV.

Exit Strategy: Refinance or Sell.

Investment Details:
Sub Address  Irvine, CA 92614. County: Orange County.
Prop Details Condominium
Lien Position 1st TD
Loan Amount $150,000
Protective Equity $88,624.22 (see PE Worksheet below…)
LTV 51% Based on As Is Value of $197,000
CLTV n/a
Subordinated Lien(s) n/a
Note Rate 10.5% Annual Interest
Sold Rate (Net Interest Rate) 8.5% (2% Servicing Premium - Hanover IS participating in Spread)
Amortization Type Interest Only
Amortization Period n/a
Term 60 Months
Monthly Payment $1,062.50 (Based on Sold rate of 8.5%)
Renewal n/a
Payment Reserve n/a
Cross-collateralization n/a
Pre-Payment Penalty n/a
Construction Holdback: n/a
Funds Control n/a
Fees Borrower to pay 4 points of the loan amount, plus $1,195 Underwriting Fee and $595 Processing Fee to Hanover Mortgage and 1.5 points of the loan amount to Broker plus all normal third party closing fees, such as title and recording fees.
 

The information above, though secured from sources believed to be reliable, cannot be guaranteed. The investor should independently verify this information to his/her satisfaction. All real estate markets can be negatively affected by interest rates, availability of capital, supply and demand factors and general economic conditions both locally, regionally and nationally. Each investor should review this summary with these risks in mind and base their investment decision on both existing market conditions and potential changes in the economy as well as your personal objectives and risk tolerance.