Featured LoanHard Money Second Mortgage Against Four Investment Properties in Orange County
Loan Amount: $400,000
Loan-To-Value: 63% LTV
Situation & Challenge
An experienced real estate investor from Orange County needed $400,000 cash-out for tenant improvements to one of their retail commercial buildings. The first challenge was to evaluate the client’s four investment properties in Orange County that would be used as collateral for a hard money second mortgage, which FCTD did within a few days. The biggest challenge was the changing market due to the COVID-19 pandemic spreading across the economy.
Solution & Result
After the trust deed investor evaluated the four properties used as collateral PLUS the borrower’s other investment properties, current liquidity, global cashflow, exit strategy to pay off the 12-month loan, and potential COVID-19 negative impacts to real estate market, FCTD was able to issue loan docs mid-March and the trust deed investor funded the $400,000 hard money second mortgage.