Case StudyOwner Occupied Hard Money Third Mortgage in Pasadena
Loan-To-Value: 51% Combined Loan-To-Value (CLTV)
Term: 20-Years / No Prepayment Penalty
Situation & Challenge
Okay, so we didn’t do a hard money third mortgage on Doc Brown’s house from “Back To The Future” (The Gamble House), but we did a third mortgage in Pasadena. The owners had spent money making improvements to the home in preparation of putting it on the market in the summer selling season.
Since the first and second mortgages had low-interest rates, it was most beneficial to keep those loans in force and do a new third mortgage. Investors in owner-occupied hard money third trust deeds aren’t in abundant supply, so it took a little digging to find an investor that liked the low-CLTV loan that would likely be paid off within six months.
Solution & Result
First Capital Trust Deeds worked with a fund in Los Angeles that sold off loans to trust deed investors to get the loan closed.
The home improvement debts were paid off and the owners had cash on hand for a significant deposit on their next purchase.