Loan Purpose
Mortgage Vintage successfully funded a blanket second trust deed cash-out loan totaling $334,640, secured by three non-owner-occupied duplexes in Los Angeles, California. The borrower, an experienced real estate investor and repeat Mortgage Vintage client, used the loan proceeds to support business-purpose investment activities within an existing real estate portfolio. The loan was originated with a 3-year term and subsequently extended for an additional 24 months following a strong record of on-time payments and stable collateral performance throughout the initial term. This Los Angeles blanket loan was structured to accommodate the borrower’s need to act quickly while delivering a compelling risk-adjusted return to trust deed investors through the Mortgage Vintage commercial loan program.
Why This Los Angeles Blanket Loan Stood Out
- The loan was secured by three fully-rented duplexes, providing six individual rental income streams and strong debt-service coverage across the collateral portfolio.
- A conservative combined loan-to-value ratio of 59.00% (56.79% net CLTV) offered meaningful equity cushion, with property values estimated to have appreciated from $2,775,000 to approximately $2,850,000 over the life of the loan.
- The existing first trust deeds carried a low fixed interest rate, reducing overall debt service pressure on the collateral and strengthening the borrower’s cash-flow position.
- The borrower demonstrated a consistent payment history throughout the initial 3-year term, supporting the decision to proceed with a 24-month extension at a 12.00% investor rate.
- Investors were offered a pro-rata share of a 2.75% extension fee on the unpaid principal balance, collected at payoff, further enhancing the total return profile of this opportunity.
- The transaction was made available to fractional trust deed investors through the CrowdTrustDeed platform, with a minimum investment of $41,830 representing a 12.50% pro-rata interest in the total loan amount.
Property Description
The collateral consisted of three duplex properties located in the Los Angeles area, positioned just east of the 110 Freeway and north of the 105 Freeway in a well-established residential neighborhood. Each duplex was originally constructed in 2009 under a single-family residential code and was legally subdivided into two units in 2016, placing each property in an R2 zoning designation. Each duplex offered approximately 2,850 square feet of living space on a roughly 3,124 square foot lot, with a total of 10 rooms per building including six bedrooms and four bathrooms. Each individual unit was configured as a three-bedroom, two-bathroom floor plan. All six units featured in-unit washer and dryer hookups, and each duplex included an attached two-car garage. The properties were situated near multiple schools and community amenities, supporting tenant demand and rental stability. At the time of the loan extension, the combined gross monthly rent across all six units was approximately $19,219.
Investment Summary
This transaction represented a well-seasoned, income-producing trust deed investment backed by tangible Los Angeles real estate collateral. The original loan was funded with a 13.50% lender rate, three months of prepaid interest, and six months of guaranteed interest, providing investors with immediate and protected income from the outset. During the 24-month extension period, the investor rate was set at 12.00%, and participating investors remained eligible to receive a pro-rata share of the 2.75% extension fee applied to the unpaid principal balance and collected at payoff. The total extension fee of $9,202.60 was split equally between investors and Mortgage Vintage. The loan maintained a 59.00% combined loan-to-value ratio against an estimated combined property value of $2,850,000, with a net CLTV of 56.79% after accounting for loan costs. This completed transaction is a representative example of the income-generating, asset-secured opportunities Mortgage Vintage structures for trust deed investors seeking consistent yields backed by California real estate.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $334,640 |
| Loan Type | Blanket 2nd Trust Deed |
| Deal Type | Cash-Out Refinance |
| Lien Position | 2nd |
| Extension Investor Rate | 12.00% |
| Original Lender Rate | 13.50% |
| Combined LTV (CLTV) | 59.00% |
| Net CLTV | 56.79% |
| Combined Estimated Value | $2,850,000 |
| Extension Term | 24 Months |
| Extension Fee (Total) | $9,202.60 (2.75% of UPB) |
| Fractional Unit Size | $41,830 (12.50% pro-rata) |
| Occupancy | Non-Owner-Occupied |
| Combined Gross Monthly Rent | $19,219 |
Property Highlights
| Field | Value |
|---|---|
| Property Type | Multi-Family Duplexes (3 Properties) |
| Location | Los Angeles, California |
| Total Units | 6 (2 per duplex) |
| Size Per Duplex | Approximately 2,850 SF |
| Lot Size Per Property | Approximately 3,124 SF |
| Unit Configuration | 3 Bedrooms / 2 Bathrooms per unit |
| Zoning | R2 |
| Year Built / Converted | Built 2009, legally subdivided 2016 |
| Garage | Attached 2-Car Garage per duplex |
| Laundry | In-Unit Washer/Dryer in All Units |
| Rental Status | Fully Rented |
Frequently Asked Questions
What is a blanket second trust deed loan and how does it work?
A blanket second trust deed loan is a single loan secured by multiple properties rather than just one. In this transaction, Mortgage Vintage placed a single $334,640 second lien across three separate duplex properties in Los Angeles. This structure allowed the borrower to access equity from the combined value of the portfolio while lenders benefited from diversified collateral backing a single loan. The blanket lien is subordinate to the existing first trust deeds on each property, which is why the combined loan-to-value ratio is a key underwriting metric.
Why would a trust deed investor consider a fractional unit in a blanket loan on Los Angeles multi-family properties?
Fractional trust deed investing allows individual investors to participate in larger, income-producing loans with a lower minimum capital commitment. In this case, a single fractional unit of $41,830 represented a 12.50% pro-rata interest in the full $334,640 loan. The multi-family collateral in Los Angeles provided six separate rental income streams, supporting the borrower’s ability to service the debt. Combined with a conservative 59.00% CLTV and an experienced, repeat borrower, this type of opportunity offered a compelling risk-return profile for passive income investors.
What happens to trust deed investors when a hard money loan is extended rather than repaid at maturity?
When a performing hard money loan reaches its maturity date and both parties agree to extend the term, investors typically receive updated terms for the extension period. In this transaction, the extension investor rate was set at 12.00% for a new 24-month term. Investors also became eligible to receive a pro-rata share of an extension fee equal to 2.75% of the unpaid principal balance, collected at payoff. Extensions are evaluated on the strength of the borrower’s payment history, current collateral values, and overall loan performance, and they can provide investors with continued yield on a seasoned, well-performing position.
Mortgage Vintage, Inc. is a California DRE-licensed hard money lender and trust deed investment company with extensive experience structuring asset-secured loans across residential and commercial property types throughout California. With a disciplined underwriting approach and a track record of successfully completed transactions, Mortgage Vintage connects qualified borrowers with trust deed investors seeking consistent, real estate-backed income opportunities.