$900K Performing Loan Purchase: Two Cross-Collateralized Residences

The Lender's Problem

The existing lender held a performing $900,000 loan and wanted liquidity to fund new loans in its pipeline. The loan was current, with all payments made as agreed since funding, and was offered for sale at par.

The loan was originally funded in November 2022 to purchase and rehab a residential income property, then increased from $800,000 to $900,000 to cover added remodeling costs. A later amendment extended the maturity to June 1, 2024.

The Helvetica Solution

The structure called for purchasing the existing $900,000 loan, secured by first deeds of trust on two cross-collateralized properties. The primary collateral was a 1,104 SF residence in coastal Oceanside generating approximately $8,200 per month in gross short-term rental income, with a broker opinion of value above $1,300,000.

The secondary collateral was a recently renovated 1,232 SF residence in San Ysidro producing $5,500 per month across a main house, a studio conversion, and motorhome parking. More than $150,000 in improvements had been completed since purchase, and a broker opinion placed its value at $900,000. Combined, the collateral supported a 45% LTV against a $2,000,000 market value.

The borrower, a real estate investor with nearly 20 years of experience, planned to refinance into a conventional loan. 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 $900,000 loan funded the purchase and full remodel of an income property.
• A sale of the performing loan at par kept the borrower's payment terms in place.
• The 12-month interest-only structure supported the planned move to conventional financing.
• Cross-collateralization across two properties kept the combined LTV at 45%.

Deal Highlights

• $900,000 performing residential loan purchase at par; first-deed-of-trust security
• Cross-collateralized by two residential income properties in Oceanside and San Ysidro
• Primary collateral: 1,104 SF short-term rental with roughly $8,200 per month gross income
• Secondary collateral: renovated 1,232 SF residence with $5,500 per month total income
• $2,000,000 combined market value; 45% combined LTV
• 12-month interest-only term; stated maturity June 1, 2024
• Planned exit: refinance into a conventional loan