Structured Note: $132,000

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Loan Amount: $132,000

Origination Fee: 1.5%

Interest Rate: 10.0%

Term: 7 years w/ balloon payment due

Amortization Type: Interest Only

Collateral: $450,000 SFR (Single Family Detached Residence) located in South San Francisco, 1st position loan

Return Metrics: $16,701.92 Interest & $1,980 Fees

ROI = 11.3%

Details:

The prospect had just inherited a home with several tax liens against it. In order to clean up title and the borrower’s own credit profile, a short term loan against the property was needed. Saibus supplied the full loan amount after making sure several risks were mitigated. First we negotiated the terms to get in the 1st position loan. Second, we made sure the appraised value of the property was solid with a significant margin of safety in case it had to be called upon. Third we made sure the exit strategy was in place, planned and executed. The exit strategy was realized with a refinance to a conventional 30 year fixed.

Posted in Capital.