Case Study

$4,000,000 Business Purpose Second Mortgage

Loan Details

Loan Amount:  $4,500,000

Loan-To-Value:  67% CLTV

Rate:  9.50% 

Term:  36-Month

Situation & Challenge

An Orange County investor wanted to use their primary residence, in Laguna Beach, for a business purpose second mortgage with cash out proceeds going toward the acquisition of commercial real estate project.

Private money lenders doing multi-million dollar second mortgages on primary residences, even for business purposes, aren’t easy to come by. But, they do exist and First Capital Trust Deeds closed a $5,000,000 owner-occupied business purpose second mortgage the year before.   

Solution & Result

First Capital Trust Deeds worked with the same fund that they closed the $5 million loan with the summer before. After an appraisal and review of the acquiring commercial property, the lender funded the $4,000,000 loan. 

The borrower was able to secure a 36-month term without a prepayment penalty. This gave the borrower the option of paying off the loan early or holding it for several years if the commercial real estate project went longer than expected. 

Do you have a similar financing scenario?
Inquire about your financing options with FCTD.