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Loan Number:220064

FULL! First Deed of Trust on a Purchase of a Natural Hot Springs Apartment Building/Resort!

More Information:


Loan Document

INVESTMENT DETAILS



This loan is a first deed of trust on an apartment building/resort in Desert Hot Springs, CA. The subject is currently used as a private luxury resort spa with 10-individual units and a 2-bedroom home. Additional features of the property are an office, laundry and spa rooms, a jacuzzi building with an indoor jacuzzi and shower, a steam room, a large pool, multiple fire pits, bar and barbeque areas, and 132-degree natural well water, with two additional dry wells. Desert Hot Springs is built over one of the world's finest natural hot mineral water aquifers. With its elevated views of the Coachella Valley and thousands of acres of gorgeous mountain preserves, it is one of the fastest-growing communities in Southern California! Minutes from an international airport, golf, shopping, renowned restaurants, major sporting events, and more! The Borrower is purchasing the property via a 1031 exchange and will be completing multiple renovations before opening the newly updated resort. The business plan is to upgrade the pool, including the deck, update the mineral well water pump, add solar panels, and refurbish all rooms by updating all bathrooms, kitchens, flooring, and painting. Approximately $150,000 will be spent to upgrade the property. By maturity, the resort will be generating enough income for the Borrowers to be able to refinance into a long-term loan. Rental Rates in the Desert Hot Springs Area are between $550-$1,250 for Studios to 2-bedroom apartments; and rates of $279-$500 per night for spa hotel rooms.

Minimum Investment

$25,000.00

Loan Amount

$455,000.00

Loan Term

36 months

Loan Interest Rate

8.50%

Loan Position

1st Position

Net Yield to Investor

8.00%


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.