The owner, Joaquin Aduna, is selling a portion of his property's equity on the Lofty Marketplace. Joaquin has owned and lived in this property since 1994.
This is structured as a leaseback. Joaquin is leasing the property back from investors as he sells his equity. He signed a 2 year lease agreement on 12/7/2023 at $4,600/month with a $50/year rent increase. He plans to renew his lease to stay for 3 additional years after his lease expires.
Joaquin plans to sell $181,300 in equity and pay off his loan balance. He then plans to sell around $200k more in equity over the next 5 years, while maintaining more than 50% equity in the property.
The property has a loan balance of $181,300 and the lender has approved the owner to sell their equity. The loan documents can be viewed here. The seller must continue to make monthly payments on their loan balance, as the lender has first lien on the property. Investors on Lofty do not pay a portion of the debt payments.
The Rental Yield of 7.18% is based on the equity value of $667,100. As the seller pays down their debt over time, their equity percentage in the property will increase and the equity percentage of Lofty investors will decrease proportionally. As a result, the Rental Yield for investors on Lofty will decrease as the debt is paid down. The Rental Yield once the loan is fully paid off is projected to be 5.64%.
Click here to learn more about how property owners sell partial ownership of their properties on the Lofty Marketplace.
6 bedroom Single Family Home located in Los Angeles, California
Details
- 6 bedroom 3 bathroom home located on a cul-de-sac just minutes away from restaurants, shops, parks, and schools
- Renovated by the owner in 2010
- Owner has lived in the property since 1994
- Approved for Tesla Powerwalls
- The city of Norwalk offers an exceptional quality of life with excellent schools, cultural attractions, and a strong job market
- Norwalk is known for its well-maintained neighborhoods and vigilant community policing, creating an environment where residents and visitors can feel secure
- Peaceful streets, well-kept parks, and a strong sense of community contribute to a harmonious living experience
- The items in the Inspection Report Repairs document have been repaired by the owner.
Property Management and Insurance
Occupancy Status
- 2 year lease (12/06/2023 - 12/06/2025)
- $4,600/month
- Yearly rent increase of $50
- Property Management fees waived for first 3 months. $50/month after
- $2,500 Security Deposit
- Lease Agreement
Location Data
- "C+" Rating for Zip Code on Niche
Due Diligence Documents
