First Capital Trust Deeds secured a business purpose $5,000,000 private money second trust deed in Silicon Valley for a real estate investor using the funds to acquire another cash flowing property.
The second trust deed had a combined Loan-to-Value (CLTV) of 40%, which gave the Los Angeles based individual trust deed investor plenty of protective equity to feel comfortable doing such a large loan. In addition to the protective equity, the first mortgage had an ultra-low rate with very low payments.
We receive several requests for private money second and third trust deeds each week. Most requests, however, we have to turn away because the CLTV is too high at 65% or greater and the ratio from the first mortgage to the proposed second mortgage exceeds the 5:1 threshold ($500,000 [1st] : $100,000 [2nd]) and are often at or above a 10:1 ratio ($500,000 [1st] : $50,000 [2nd]). This one was unique because the second mortgage was actually 40% greater than the first mortgage, with a ratio of 3:5 and there was well over $10 million of protective in the property.
Private Money Second Trust Deed Terms:
- $5,000,000 Loan Amount
- 36-Month Term
- 12-Month Guaranteed Interest