Loan Type: Acquisition of Property
Property Type: Secured Storage on 5 Acres w/ Office
LTV/LTC: 65% of the 'As Is' Value - Purchase Price & 90% CLTV
Rate and Term: 2 Year, 10%, Interest Only Note
Obstacles: Credit in mid 500's, down payment, special use property & seller carryback.
Situation: The Borrower owns a towing business and purchased property to create a secured storage facility for impounded vehicles and business operations. With 10% down payment and a seller carryback as 2nd lien the CLTV (combined loan to value) was 90% . Deal was funded within 15 business days as all parties worked diligently. By owning the facility, overall business revenue will increase by 25% and once credit improves we'll assist with a refinance.