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Monday, May 9, 2011

El Cortez Loan

This one funded about 2 month ago but I am just getting to put it up on the blog now. The borrowers purchased this property in 2010 for $150,000 and put in about $30,000 in work. They then went ahead and rented this unit out for $2,500 a month a s a vacation rental. The borrowers are flippers that were going to try to hold the unit but decided to see what they could get on the market for it. The property is in contract for just under $200,000.

We did a 2 year note for this borrower (although he only kept it for 2 months).  This is a 1st trust deed for $120,000 and it's paying the investor 10% annualized.