Mortgage Vintage funded a $180,000 business-purpose cash-out refinance structured as a blanket first trust deed secured by two Southern California properties: a vacant, multifamily-designated land parcel in San Bernardino County and a residential property with an ADU in Corona, CA. The borrowers, who had previously worked successfully with Mortgage Vintage, sought proceeds to advance pre-development activities including planning, architectural services, municipal fees, and property improvements. Their stated exit strategy was to refinance into a construction loan upon completing the entitlement process. This Corona land loan was originated as a non-owner-occupied, business-purpose transaction and was fully funded through the CrowdTrustDeed platform, Mortgage Vintage’s trust deed investment marketplace.
Why This Corona Land Loan Stood Out
- Conservative 53.68% combined CLTV across two collateral properties with a combined estimated value of $1,250,000
- Primary land collateral carried a formal appraisal supporting an as-is value of $570,000 for the 1.43-acre multifamily-designated parcel
- Additional residential collateral in Corona provided supplemental security, with a broker price opinion supporting an as-is value of $680,000
- Strong 12.50% interest rate with 6 months of guaranteed interest protecting lender yield
- 6 months of prepaid interest provided immediate, secured cash flow from loan inception
- Borrowers had a prior successful repayment history with Mortgage Vintage
- Business-purpose proceeds were directed toward property planning, entitlement costs, and pre-development improvements
- Clear exit strategy through future construction financing, supported by an active multifamily development plan
- Short 18-month loan term aligned with the borrowers’ development timeline
Property Description
The primary collateral securing this Corona land loan was a vacant land parcel of approximately 1.43 acres located along W. Base Line Street in San Bernardino, California. A formal land appraisal completed in September 2026 concluded an as-is value of $570,000. The borrowers held title as tenants-in-common, each owning an undivided 50% interest. The land was designated for multifamily use, and the development plan contemplated entitling the site for a 50-unit apartment community.
The additional collateral property was a residential home with an accessory dwelling unit situated on an approximately 4,791-square-foot lot in Corona, CA 92882. Public records described the one-story structure, originally built in 1912, as containing approximately 1,135 square feet with 2 bedrooms and 1 bathroom. An interior broker price opinion provided more current observations, reporting approximately 1,549 square feet, 3 bedrooms, and 2 bathrooms, with the property in average overall condition and the interior in good condition with some updates. The BPO supported an as-is value of $680,000, a repaired value of $690,000, and a 30-day quick-sale value of $650,000. The Corona property was situated in a suburban neighborhood with retail, dining, and freeway access within approximately 2 to 3 miles, and the BPO projected market rent of approximately $4,000 per month. The Corona property carried an existing first lien of approximately $511,000.
Investment Summary
Mortgage Vintage originated this transaction as a $180,000 first trust deed blanket loan at a 12.50% interest rate with an 18-month loan term. The combined loan-to-value ratio stood at 53.68% CLTV based on combined collateral values of $1,250,000, and the net LTV was 52.78%. The loan included 6 months of guaranteed interest and 6 months of prepaid interest, providing lenders with immediate and protected income from the outset. The transaction was structured as a non-owner-occupied, business-purpose cash-out refinance, with proceeds allocated toward pre-development and entitlement activities. Investors seeking similar opportunities may explore Mortgage Vintage’s blanket and commercial loan program for current trust deed investment offerings.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $180,000 |
| Interest Rate | 12.50% |
| Loan Term | 18 Months |
| Lien Position | 1st Trust Deed |
| Loan Type | Blanket |
| Deal Type | Cash-Out Refinance |
| CLTV | 53.68% |
| Net LTV | 52.78% |
| Combined Collateral Value | $1,250,000 |
| Guaranteed Interest | 6 Months |
| Prepaid Interest | 6 Months |
| Occupancy | Non-Owner Occupied |
| Loan Purpose | Business-Purpose Cash-Out |
Property Highlights
| Field | Value |
|---|---|
| Primary Property Type | Vacant Land (Multifamily Designated) |
| Primary Property Location | San Bernardino, CA |
| Primary Parcel Size | Approx. 1.43 Acres |
| Primary Appraised Value (As-Is) | $570,000 |
| Additional Collateral Location | Corona, CA 92882 |
| Additional Collateral Type | Residential with ADU |
| Additional Collateral Lot Size | Approx. 4,791 Sq Ft (0.11 Acres) |
| Additional Collateral BPO (As-Is) | $680,000 |
| Additional Collateral Repaired Value | $690,000 |
| Additional Collateral Quick-Sale Value | $650,000 |
| Existing Lien on Corona Property | Approx. $511,000 |
| Projected Market Rent (Corona) | Approx. $4,000/Month |
| County | Riverside (Corona) / San Bernardino |
Frequently Asked Questions
What is a blanket hard money loan and how does it work for land in California?
A blanket hard money loan is a single loan secured by two or more properties under one deed of trust or multiple cross-collateralized deeds. In California, this structure is commonly used when a borrower needs to leverage equity across multiple assets to meet loan-to-value requirements or access additional capital. In this transaction, Mortgage Vintage secured a first trust deed position across a vacant land parcel and a residential property, allowing the combined collateral values to support a conservative CLTV while providing the borrower with business-purpose proceeds for pre-development activities.
Why do hard money lenders require guaranteed interest on land loans?
Land loans carry inherently higher risk than improved-property loans because raw or undeveloped land generates no income and can be more difficult to liquidate quickly. To offset this risk and protect investor returns, hard money lenders like Mortgage Vintage typically require guaranteed interest periods, which ensure that lenders receive a minimum number of months of interest income regardless of early payoff. On this Corona land loan, a 6-month guaranteed interest provision meant that trust deed investors were protected against an early exit by the borrower immediately following funding.
What exit strategies are common for hard money land loans in Southern California?
The most common exit strategies for hard money land loans in Southern California include refinancing into a construction loan once entitlements are secured, selling the entitled land to a developer at a premium, or obtaining conventional or SBA financing once improvements and permits are in place. In this transaction, the borrowers planned to use the loan proceeds to advance the entitlement process for a proposed multifamily development and then refinance into a construction loan as the primary repayment path. Lenders evaluate the feasibility of the exit strategy as a key underwriting factor alongside collateral value and borrower experience.
Mortgage Vintage, Inc. is a California Department of Real Estate licensed hard money lender and trust deed investment company with extensive experience originating, underwriting, and servicing first and second trust deed loans secured by a wide range of property types across California, including vacant land, residential, multifamily, and commercial assets. Our team brings decades of combined expertise to every transaction, ensuring that both borrowers and trust deed investors benefit from disciplined underwriting, transparent deal structures, and professionally managed loan servicing throughout the life of each loan.