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Completed Debt
Residential
Lodi CA Single Family Loan
Lodi, CA
INVESTMENT STRATEGY
INVESTMENT TYPE
Debt
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100% funded
Offered By Catalina Estates LLC
%* TARGET IRR 9.0%-%
* TARGET EQUITY MULTIPLE
Estimated Hold Period 6 to 12 months
Estimated First Distribution
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Overview
Management

Catalina Estates LLC

Catalina Estates, LLC is a real estate investment firm formed in 2011 and based in Los Angeles, California. The two owners of Catalina Estates, Christopher Lim and David Lu, also own an affiliated brokerage company together, Neighborhood Consulting, Inc.

Since 2011 Catalina Estates has focused on identifying properties that could be purchased for a significant discount to market price, rehabbing those properties by performing primarily cosmetic repairs and reselling those properties for significant profits once the repair work was completed.

Catalina Estates has successfully "flipped" several properties with others pending. Their completed projects include:

Property Purchase Price Market Price Repair Cost Sale Price ROI
16121 S Harris St. Compton, CA 90221 $115,000 $160,000 $25,000 $242,000 89%
9166 Gregory St. Cypress, CA 90630 $384,200 $550,000 $80,000 $680,000 56%
640 Boxwood Ct. Ontario, CA 91761 $402,000 $625,000 $50,000 $725,000 68%
8489 Hunter Dr. Rancho Cucamonga, CA 91701 $315,000 $480,000 $40,000 $500,000 46%
6231 Friend Ave. Whittier, CA 90601 $370,000 $625,000 $60,000 Pending N/A

 

  • Christopher Lim
  • David Lu
Christopher Lim

Christopher Lim is the owner of Melody Estates, LLC and is an owner of Catalina Estates, LLC and the Broker-Owner of Neighborhood Consulting Inc., an affiliated brokerage firm. Chris has demonstrated success in leading Real Estate Investment ventures and firms in order to achieve superior financial returns. His track record includes proven accomplishments leading effective negotiations for property purchases, leading teams to efficiently manage construction projects with aggressive timelines, and successfully negotiating sales of completed properties to ensure timely return on investment.

Christopher has also spent time working as a Realtor, Loan Officer and Account Executive for prestigious firms such as; Prime Realty, Alliance Bancorp, First Magnus, Funded Capital, Americorp Funding, and SDL Financial.

As a residential loan officer, Christopher demonstrated industry knowledge by creating a multi-cultural radio show, School of Mortgages (KLBA) called Escuela De Hipoteca.  This show was intended to educate borrowers to make better decisions when selecting a home loan (2005-2009). 

Given his extensive experience in leadership within real estate, lending, and account management, Christopher has access to key networks and up to date knowledge about current industry trends.  This access helps him to proactively assess and analyze potential investment opportunities to ensure that only ventures with potential are considered.   

While leading Neighborhood Consulting, Christopher demonstrated success in effectively utilizing international networks through the successful closing on the sale of the Holiday Inn Hotel and Suites Anaheim (a $27.5 million deal).

David Lu

David Lu is the Managing Member of Catalina Estates LLC, and the co-owner of Neighborhood Consulting, Inc..  David's primary responsibilities include contract preparation, administrative duties, maintaining the finances for both companies and assisting in the management of property rehabilitation projects.

David was previously employed as general manager at Clean World Waters, Inc., a manufacturing firm, where he oversaw administrative duties, quality control, accuracy of orders submitted to the production team, and maintained finances. Afterwards, David spent time as a business broker at Power Business Solution, Inc., in which he was responsible for finding potential buyers for businesses listed on the market and ensure that they were qualified to take over operations.  He also worked with business sellers and helped counsel them on whether it was the right time to sell and at what price.  This included analyzing financial statements in order to formulate a fair asking price that they would be satisfied with.  During this time, David was enrolled at in a sixteen (16) course Certificate Program at UCLA Extension for Real Estate with a Specialization in Investments. Soon after, David teamed with Christopher Lim at Neighborhood Consulting, Inc. and later, Catalina Estates, LLC.

David received his Bachelor's Degree from the University of California, Los Angeles in Sociology with a Minor in Asian Humanities,

Track Record

Business Plan
Property

At A Glance

Property Type: Residential, Single-Family
Investment Type: Loan Purchase*
Estimated Return: 9% annualized
Loan Term: 12 months
Location: Lodi, CA
   
Purchase Price: $120,000
Loan Amount: $115,000
Current As-Is Appraised Value: $180,000
Current Loan to Value: 63.9%

Summary

The borrower, Catalina Estates LLC, ​is obtaining a loan for the purpose of a rehab. Catalina Estates LLC is performing renovations on the property and will look to sell as quickly as possible at a higher price than the purchase price. Renovations typically include new paint, new carpet, system, plumbing and electrical upgrades, and general clean up items. Upon completion, the property will look like other renovations Catalina Estates LLC ​has executed. 

Investors will receive interest payments of 9% with a final balloon payment at the end of the loan term. The security interest for the underlying borrower loan is a mortgage deed secured by the property in first position.*

Risk Factors**

  • Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected”, “forecasted”, “estimated”, “prospective”, “believes,” “expects,” ”plans” “future” “intends,”, “should,” “can”, “could”, “might”,“potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements.
  • Market Risk: Investments related to mortgages secured by real estate are subject to market valuation risks that may be caused by changing economic and local market conditions. The property underlying the corresponding borrower loan is expected to have reasonably acceptable loan-to-value ratios and to meet certain other valuation criteria, but estimated values made when the loan is originated may not fully represent current market values, and subsequent market values will in particular be affected by changing economic or local market conditions. Such conditions are beyond the control of Realty Mogul and of the corresponding borrower on this loan. Such conditions may change due to factors such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors.
  • Credit Risk: The borrower loan is being made with respect to a property that is in need of repairs, a situation that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the credit worthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan.
  • Insurance Risk: The borrower will maintain insurance of the kind that is customarily obtained for similar properties, but is not expected to carry certain disaster-type insurance (covering events of a catastrophic nature, such as earthquakes). In the event that an uninsured disaster should occur to the real property underlying the corresponding borrower loan, or in the event a borrower does not maintain the required insurance and a loss occurs, Realty Mogul could experience difficulty recovering the principal amount of the corresponding borrower loan and any interest due thereon.
  • Illiquid Investment - Transfer Restrictions & No Public Market: The transferability of these securities are restricted by the terms of this offering and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the securities and none is expected to be available in the future. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Risk Mitigation**

  • There is a personal guarantee on the underlying borrower loan.*
  • The borrower is a real estate company with a history and a track record of success.
  • The security interest for the underlying borrower loan is a mortgage deed.*
  • The underlying borrower loan is protected by title insurance.*
  • The underlying property is protected by hazard insurance.*
  • Investor returns are not contingent on the appreciation of the property value and investor returns do not increase based on any resale price. The borrower is still obligated to repay the corresponding borrower loan.
  • In a worst case scenario, a foreclosure of the property is possible. Proceeds would be distributed to investors according to the percentage of the total investment opportunity initially funded net of any expenses incurred for the foreclosure proceedings. 

*An investment in this loan will be made through a borrower dependent payment note issued by Realty Mogul. This promissory note is dependent on payments that Realty Mogul receives on the underlying borrower loan. While the underlying borrower loan is secured by legal title on real estate, the borrower dependent payment note is not itself secured nor does it have a personal guarantee. 

**The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Investor Document Package for a discussion of additional risks.

Location

The City of Lodi is located in San Joaquin County, which is in Northern California approximately 35 miles south of Sacramento, CA and 80 miles west of San Francisco, CA.

Lodi is best known for being the "Heart of California's Premium Wine Business" as the production of premium quality wines is the primary economic driver in the region. Supported by over 90,000 acres of vineyards that surround the Lodi community, Lodi-Woodbridge winegrape growers annually produce a crop worth more than $350 million. Nearly 40% of California’s premium wine grapes are grown in this region, making Lodi the “Winegrape Capital of the World”. 

The Lodi-Woodbridge area has been part of California’s wine industry for over 100 years. Over 60 wineries, half with tasting rooms, are located in the area, which drives significant tourism to the region. Lodi is also home to the nation’s fastest growing brands, Seven Deadly Zins and the Jewel Collection.

Lodi has a population of approximately 63,000, within just over 13 square miles, its school district, retail, and medical hospital serve an estimated 175,000 customers. The largest employers in the city include the Lodi Unified School District, Lodi Memorial Hospital, Pacific Coast Producers, Blue Shield of California and General Mills.

The property is located in a predominantly suburban neighborhood in Lodi comprised primarily of single family homes. The property is particularly appealing due to its location being within half-a-mile of several large parks, schools, the General Mills Plant, and the Lakewood Mall Shopping Center.

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Disclaimers/FAQs
Disclaimers

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