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Loan Number:220114

First Deed of Trust on four residential units comprised of two parcels in Lucerne, CA!

More Information:


Loan Document

INVESTMENT DETAILS



This loan is a first deed of trust on four residential units located in Lucerne, CA. The subject is property is comprised of two parcels, each containing two units, situated on the north shore of Lake County near Clear Lake, CA. The subject properties' current residential use is considered "grandfathered" in by the city; however, they do not conform with the current zoning. The subjects are currently zoned for commercial uses such as office space, retail, hotel, or multi-family. However, they have been used as residential income properties since they were built in 1956, and per the appraiser, the current residential use is considered the highest and best use. The first subject property contains a total of 4-bedrooms, 2-bathrooms, and 2,190 square feet of living space on a 4,026 square foot lot. The downstairs unit was previously used as an office but has since been rented to the property manager for $897 per month. The upstairs unit is currently vacant with an asking rent of $875. The second subject property contains a total of 4-bedrooms, 2-bathrooms, and 1,327 square feet of living space also on a 4,026 square foot lot. The upstairs unit is rented for $750 per month, and the downstairs is vacant with an asking rent of $800. Per the appraiser, the subject properties are both rented below the $2,043 average market rent. The Borrower purchased the properties in 2016 for $300,000 and currently holds them free and clear. The purpose of the loan is to provide cash out for the Borrower to complete some renovations on the properties such as installing separate meters, paint, flooring, update the bathrooms, and exterior trim repair and paint. The balance of the funds will be used on similar repairs to his other rentals. Upon or prior to maturity, the Borrower will refinance into a longer-term loan or sell one of his properties to repay the debt.

Minimum Investment

$25,000.00

Loan Amount

$200,000.00

Loan Term

60 months

Loan Interest Rate

9.50%

Loan Position

1st Position

Net Yield to Investor

9.00%


Important Investment Disclosures:
Important investment disclosure. Your investment will be either directly or indirectly secured by real estate. You may receive a direct interest in a promissory note and deed of trust as a fractionalized interest as a tenant in common, as a single beneficiary, or, your investment may be in the form of a membership interest in a limited liability company formed for the specific purpose of funding a loan. Nothing in this announcement constitutes an offer to sell or a solicitation of an offer for investment. An offer is made only by the offering circular and material disclosure package. Past performance is not an indication of future results. We strongly recommend before making an investment decision that you thoroughly read the contents of the entire loan material disclosure package. You are encouraged to consult with your own tax and financial advisers before investing. Investments are NOT insured by any government agency and are NOT guaranteed. Investments offered through So-Cal Capital, Inc. are not liquid, not transferable, and involve substantial risk, including the possible loss of all principal.