Featured LoanMid-Construction Second Mortgage in Los Angeles
Loan Amount: $330,000
Loan-To-Value: 70% LTV
First Capital Trust Deeds provided an experienced real estate investor with a $330,000 mid-construction second mortgage with proceeds going toward the down payment of a new project in Pasadena. The 8-month loan, with a December 2020 maturity date, went behind an existing $1,000,000 hard money loan originated by FCTD that was also maturing in December 2020.
One feature of this hard money second mortgage behind a hard money first mortgage was an intercreditor agreement between the two lienholders. The first lien holder had a provision in their loan not allowing junior liens, which is boiler plate on all their loans. However, since the borrower on this project had an extensive track record and several other loans with the first lender, they agreed to amend the loan to allow a junior lien with the execution of an intercreditor agreement between both lenders.