As of 3/31/16:
- First quarter average return: 7.75%
- Year-to-date annualized return: 7.75%
- Number of loans: 91
- Gross loan portfolio dollars: $47,561,616 (91.46% in 1st and 8.54% in 2nd position)
- Average loan-to-value: 48.38%*
- Average loan amount: $522,655
*calculated when loans are initially funded
6298 Snell Avenue, San Jose, CA, is a 2,508sqft, two-story, single family home that sits on a 6,490sqft lot. It has 5 bedrooms and 3 bathrooms. Built in 1967, this home features a patio and in-ground pool.
Our borrowers wanted to acquire this new home in San Jose, before selling their previous residence located at 291 Lakemuir Drive, in Sunnyvale, CA. They wanted to use the equity in their departing home to help purchase their new one. The new home was being purchased for $900k and the departing residence was valued at $825k with a senior mortgage of $318k. The borrowers needed a loan of $800k to complete the new purchase.
Stonecrest was able to use our Bridge Loan program to cross collateralize both properties. We now have a first lien on the San Jose property and are secured in second position on the departing residence. Once the departing property sells, the loan will be paid down and conventional financing will pay off any remaining balance. Bridge Loans are short term loans that help buyers compete in this market by allowing them to swing the equity from their departing residence to their new one.
Our borrowers have strong income and a great credit profile, leaving little concern for the take out loan once the departing residence is sold. Our total loan to value, including both properties, is 65%, making this another great addition to the portfolio.
Past 12 months Annualized Returns:
|Month||Income Partner||Growth Partner|