This transaction was a rehab loan for a property located in Pleasant Hill. The investor was able to get the property for below market value due to his relationship with the seller, who was moving out of state. The property was in need of major rennovations to bring it up to the level of comparable properties in the immediate area. The location was great, and there was good profit potential.
We structured this with a first and a second to minimize the amount of cash needed to be brought to the table by the borrower. Funds were also made available through a fund control account for all of the rehab work to be done, as well as an interest reserve, allowing for work to be completed and the property to be listed prior to any monthly payments coming due.