Commercial/Automotive

Transcription

1 Commercial/Automotive Bell Flower, CA Bellflower, CA # st Trust Deed $2,130,000 A Presentation for Investment in a Note and 1 st Deed of Trust

2 Contact Investor Relations to make a reservation or for more information Disclosure 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. An offer is made only by the Offering Circular and material disclosure package. Past performance is not an indication of future results. Investments are not insured or guaranteed by any governmental agency. Investments offered through So-Cal Capital, Inc. are available to California residents only, are not liquid, not transferable, and involve substantial risk, including the possible loss of all principal.

3 Contact Investor Relations to make a reservation or for more information Loan This loan is a first deed of trust opportunity on the purchase of an automotive based commercial property center in Bellflower, CA. The borrower is a highly experienced investor and is seeking a purchase money loan to acquire the subject property. Once acquired the borrower plans to do some minor cosmetic repairs to the property and fully stabilize the property by increasing rents to market value and filling two vacant units. Security Collateral for this loan will be a Deed of Trust, Security Agreement, Assignment of Rents & Leases and Fixture Filing in first lien position. The note will be secured by a commercial property. The property is located in Bellflower, CA. Loan Valuation Appraised Value: $3,800,000 First Trust Deed: $2,130,000 Purchase Loan To Value 60% Loan To Value: 56% Yield To Investor 10.0% The appraisal has been prepared by an independent appraiser licensed to do business in the State of California. The date of the appraisal is February 12, A copy of the appraisal is available in the lender disclosure package.

4 Loan Contact Investor Relations to make a reservation or for more information Loan Terms The loan amount will be $2,130,000 at a fixed note rate of 10.50% providing monthly payments of interest only in the amount of $18, with the entire balance of principal due in 36 months from the 1st day of the second calendar month following the close of escrow. There will be no prepayment penalty, however, the borrower will be responsible for 120 days of interest. Documents will include due on sale or further encumbrance provisions. There will be a late charge imposed for any payment more than 10 days after its due date in the amount of 10% of the payment due. If imposed, the late charge will be equally divided between investor and servicer. In the event a loan is in default in excess of 30 days, a default interest rate will be imposed equal to 5% above the current interest rate. The term of this loan is 36 months or until the loan is repaid and/or the security property is sold. Borrowers The borrower is a real estate investment limited liability company formed in The principal of the borrowing entity is an experienced real estate professional that owns numerous real estate investments in the general Los Angeles area. Specifically, the principal has experience in operating single family, multifamily, and commercial assets. The borrower along with the principal show strong financials having over $150,000 in business bank accounts and over $500,000 in affiliated accounts. Additionally, the principal has an estimated net worth of over $6 million. Furthermore, the borrower shows good credit having a mid-credit score of 699.

5 Loan Contact Investor Relations to make a reservation or for more information Purpose of the Loan The purpose of this loan is to purchase a commercial income property. Source of Repayment The source of repayment for this loan will be from the borrower s own funds or through a refinance. Before the subject loan matures the borrower will obtain conventional bank loan on the property. Property Description The property is currently developed with four buildings comprise of an automotive and business centers. The property consists of 10 total units with 21,660 square feet of total rentable space on a 1.68-acre parcel. Currently 8 out of the 10 units are occupied leaving 2 vacant units. Three of the four buildings are occupied by multiple automotive repair businesses while one building is solely occupied by a popular local automotive business known as Lube it Rite. A Phase I and Phases II have been performed; the property shows no evidence nor has had any past environmental issues. The property is conveniently located one block away from the 91 freeway and situated off a major intersection making it an ideal location for automotive tenants. In its current state the property generates over $20,000 in monthly rents. The borrower plans to increase rents to market value. Once fully stabilized the property will produce over $26,000 in monthly rents.

6 Loan Details Contact Investor Relations to make a reservation or for more information Property Location: Type of Property: Bellflower, CA Commercial Appraiser: Frank Stolfi, Licence # AG Appraised Value $3,800,000 Date of Value: February 12, 2018 Appraisal Type: As-Is Market Value Value per Foot: $ Zoning: Compliance: Commercial Legal and Conforming Loan Amount: $2,130,000 Purchase Price $3,550,000 Loan To Value: 56% Note Rate: 10.50% Investor Yield: 10.0% Term: 36 months