$1M Performing Loan Purchase: La Quinta Golf-Course Residence
La Quinta, CA: A property owner used a $1,000,000 cash-out refinance to buy out a partner in the owner's business. The transaction described here was the purchase of that existing performing loan, secured by a 3,821 SF investment residence, with a 12-month interest-only term and 52.63% reported LTV.
The Borrower's Problem
The owner needed capital to buy out a business partner. A $1,000,000 cash-out refinance against the investment residence provided that capital. The loan was originated on November 3, 2023, and the borrower maintained the mortgage payments as agreed.
The subsequent transaction involved acquiring this performing loan, not making another cash advance. The borrower planned to replace the 12-month financing with a conventional loan or repay it with cash.
The Helvetica Solution
The structure called for purchasing the existing $1,000,000 loan secured by a first deed of trust. The 3,821 SF residence had four bedrooms and four bathrooms on a 13,939 SF lot, approximately 0.32 acres.
Comparable properties supported a reported $1,900,000 value, placing the loan at 52.63% LTV. The existing loan carried interest-only payments for 12 months and a stated maturity date of December 1, 2024.
The borrower intended to refinance conventionally or repay with cash. The source summary describes the acquisition structure and planned exit; it does not confirm a completed loan purchase or payoff.
Benefit to the Borrower
- The original $1,000,000 refinance released capital for a business-partner buyout.
- A purchase of the existing loan did not require a second property acquisition or new cash advance.
- The 12-month interest-only structure supported the planned transition to conventional financing or cash repayment.
- The loan was secured at 52.63% of the property's reported $1,900,000 value.
Deal Highlights
- $1,000,000 performing residential loan purchase; first-deed-of-trust security
- Original loan purpose: cash-out refinance for a business-partner buyout
- 3,821 SF investment residence with four bedrooms and four bathrooms
- 13,939 SF lot in a La Quinta golf-course community
- $1,900,000 reported property value; 52.63% LTV
- 12-month interest-only term; stated maturity December 1, 2024
- Planned exit: conventional refinance or cash repayment
Need financing for a partner buyout or a loan purchase?
Helvetica funds bridge and structured loans from $300K–$10M+, typically closing in 3–10 days following receipt of all requested documentation.
