Case StudySecond Position Blanket Loan in Los Angeles
Loan Amount: $800,000
Loan-To-Value: 72% Combined Loan-To-Value (CLTV)
Situation & Challenge
FCTD’s long-time borrower had several projects nearing completion along with a few new projects they were taking on. During the overlap between selling and starting new projects, the developer needed additional liquidity to get the new projects off the ground.
Not many private money lenders will lend behind existing private money loans nor will they get creative enough to do one blanket loan against four properties.
Solution & Result
FCTD worked with the borrower and a Los Angeles-based trust deed investor to structure a second position blanket loan with lien releases when properties sell or refinanced.
The borrower accessed $750,000 cash out on the new loan to put toward final development costs on their next two projects.