West Los Angeles Rehab and Expansion – Tranche I
This is a prefunded residential – purchase and rehab opportunity for a Single Family Residential property in California. The subject property address is 2357 Greenfield Ave, Los Angeles, California.
The developer is requesting a loan of $1,575,000 in order to purchase and renovate the underlying property. The property was purchased for a total of $1,175,000 in November of 2015. There is major renovation needed for the underlying property, totaling $575,000. The borrower will receive 6 draw(s) totaling $1,575,000 over the course of the loan. The initial draw in the amount of $1,000,000 occurs at close of escrow to purchase property. The second draw of $115,000 will be disbursed after 20% of the renovation is complete and after proof of permits for the expansion are shown. The third draw of $115,000 will be disbursed after 40% of the renovation is complete. The fourth draw of $115,000 will be disbursed after 60% of the renovation is complete. The fifth draw of $115,000 will be disbursed after 80% of the renovation is complete. The sixth draw of $115,000 will be disbursed after evidence of completion of the renovation is shown. $30,000 (approx. 2 months) in interest reserve will be held by Patch of Land. The borrower plans to sell the property.
2357 Greenfield Ave
- Purchase Price: $1,175,000
- Renovation: $575,000
- After-Rehab Value: $2,450,000
An independent third party appraisal commissioned by Patch of Land, shows an After Repair Value (ARV) of $2,450,000 for 2357 Greenfield Ave. The ARV ratio is 64% and is in line with the data we found during our due diligence process. Our research shows the residential market surrounding the underlying property in this area of Los Angeles is stable and supply and demand are in balance.
2357 Greenfield Ave was built in 1929 and is located in the suburban neighborhood of Los Angeles, California. The property currently has 4 rooms including 2 bedrooms and 1 bathrooms, with a gross living area of 1,323 sq. ft. on a 6,480 sq. ft. lot. The property will be increased to 3,250 sq. ft. after renovations and will have 4 bedrooms and 4 bathrooms. The property is near country clubs, museums, shopping centers, parks and recreation.
2357 Greenfield Ave
Property renovations are awaiting loan to start renovation and there is major renovation needed for the property. The following renovations are planned to be completed:
- Nearly 2,000 added square feet
- New Windows
- New Doors
- New Hardwood
- Full Landscaping Makeover
- New Appliances
- New Kitchen
- New Bathrooms
- Additional Bedrooms and Bathrooms