Corona Del Mar, CA

This loan is a second deed of trust on a single-family residence in Corona del Mar, CA. Corona del Mar is an affluent coastal neighborhood within Newport Beach known for its scenic beaches, dramatic ocean bluffs, luxury residences, and charming village atmosphere. The community offers a mix of vintage cottages and high-end custom homes, along with boutique shopping, acclaimed dining, and convenient access to neighboring communities including Newport Coast and Crystal Cove. The subject, located at 10 Shoal Drive, is a two-story attached single-family residence situated within the highly desirable gated Jasmine Creek community. Built in 1974, the property contains approximately 2,666 square feet of living area on a 4,428-square-foot lot and features three bedrooms, two and one-half bathrooms, a two-car garage, one fireplace, patio and deck areas, and peak ocean views. At the time of appraisal, the property was undergoing an extensive renovation and modernization program. Planned improvements include a fully remodeled kitchen and bathrooms, new flooring throughout, upgraded windows and doors, new plumbing, exterior improvements, landscaping, and high-end finishes. The Borrower provided a renovation budget of approximately $473,144, and the property was appraised subject to completion of the planned improvements. Upon completion, the property is projected to achieve a C2 condition rating, reflecting a substantially renovated home with little to no deferred maintenance. The Borrower purchased the property in February for $2.6 million. The existing first mortgage is held by Citadel at an 8.625% interest rate, with a principal balance of approximately $1.95 million and a maturity date in March 2066. The purpose of the loan is to provide cash out to assist with completing the renovation. Once the improvements are completed, the Borrower intends to list the property for sale and use the proceeds to pay off the loan. The Borrower is a self-employed mortgage broker who has operated his own lending company specializing in conventional loans for nearly two decades. He has successfully completed two previous renovation projects in Corona del Mar, generating approximately $2.3 million in profit. The Borrower owns three properties, including his primary residence, with an estimated combined value of $6.1 million and approximately $2.1 million in protective equity. He maintains approximately $287,002 in reserves and has a FICO score of 729. The loan will have a maturity of 12 months.