Loan Purpose
Current successful Mortgage Vintage borrower sought a cash out 2nd TD to finish construction. The loan is structured as a business-purpose, non-owner-occupied second trust deed to provide capital for the continued renovation and ADU conversion of the subject property. Loan proceeds are intended to support construction and improvement activities designed to enhance the property’s utility and marketability, with a defined short-term horizon and a refinance or sale contemplated as the primary exit.
Property Description
The collateral is a single-family residence with an ADU component located in Santa Barbara, California, within an established residential neighborhood south of Highway 101.
Investment Summary
- Trust Deed Position: 2nd Trust Deed
- Loan Amount: $700,000
- Interest Rate to Lender: 10.00%
- Term: 18 months, interest-only
- Guaranteed Interest: 6 months
- Prepaid Interest: 3 months
- Investment Structure: 10 Fractional interests of $70,000 in a Trust Deed
- Distributions: Pro-rata interest payments; principal returned upon payoff or resolution
