Mortgage Vintage funded a $150,000 business-purpose cash-out refinance secured by a non-owner-occupied four-unit residential property in Lynwood, California. The borrower leveraged the substantial equity in this fully leased quadruplex to access capital for business-purpose investment activities, with the stated goal of expanding and diversifying a broader real estate portfolio while strengthening overall cash position. This Lynwood loan was structured as a 2nd Trust Deed with a 24-month term, providing the borrower with flexible capital while keeping the combined leverage profile remarkably low. Investors who participated through the CrowdTrustDeed platform gained access to a well-collateralized trust deed opportunity backed by a high-value Los Angeles County asset.
Why This Lynwood Loan Stood Out
- The combined loan-to-value ratio came in at just 18.37%, representing one of the lowest leverage profiles seen on a cash-out refinance of this type, offering investors a substantial cushion of protective equity estimated at over $1,102,000.
- The subject property was fully leased to four tenants generating approximately $7,700 per month in rental income, demonstrating an active, income-producing collateral asset with real cash flow supporting the borrower’s repayment capacity.
- The borrower identified multiple exit pathways, including ongoing investment income, sale, or refinance of completed investment properties, providing layered repayment optionality that added confidence to the deal structure.
- The property’s well-established urban location in Lynwood, Los Angeles County, near major freeway corridors and established community amenities, supported the BPO valuation of $1,350,000 and underscored the asset’s long-term desirability.
Property Description
The collateral securing this loan was a two-story, four-unit residential quadruplex in Lynwood, Los Angeles County, California. Originally built in 1965, the wood-frame property offered approximately 4,000 square feet of living area situated on a 7,073-square-foot lot. The building contained 12 bedrooms and 4 bathrooms spread across four rental units, all of which were occupied at the time of funding. Monthly gross rental income was reported at $7,700. The property was located in a well-established urban neighborhood near major freeway access and community retail and educational amenities, contributing to its strong tenant demand and stable occupancy. A recent interior Broker Price Opinion reflected an as-is value of $1,350,000. To learn more about how Mortgage Vintage structures financing for properties like this one, visit our Multifamily Hard Money Loan Program page.
Investment Summary
Mortgage Vintage structured this transaction as a $150,000 2nd Trust Deed carrying a 12.50% annual interest rate with a 24-month loan term. The deal included six months of guaranteed interest and a three-month prepayment interest provision, with a minimum investment of $30,000. Based on the BPO valuation of $1,350,000 and an existing 1st lien balance of $98,000, the total combined debt stood at $248,000, producing a Combined Loan-to-Value of 18.37% and a Net CLTV of 17.98%. The borrower carried a 642 credit score and disclosed prior mortgage delinquencies and credit card missed payments attributable to temporary cash-flow strains from business-purpose investment activities and a prior investment partner conflict. The borrower represented that corrective steps had been taken to stabilize finances going forward. Despite the credit profile, the exceptional equity position and income-producing nature of the collateral made this a compelling trust deed investment opportunity for Mortgage Vintage investors.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $150,000 |
| Interest Rate | 12.50% per annum |
| Lien Position | 2nd Trust Deed |
| Loan Term | 24 Months |
| Guaranteed Interest | 6 Months |
| Prepayment Interest | 3 Months |
| Minimum Investment | $30,000 |
| Deal Type | Cash-Out Refinance |
| Loan Purpose | Business Investment |
| BPO Valuation | $1,350,000 |
| Existing 1st Lien Balance | $98,000 |
| Combined Loan Amount | $248,000 |
| CLTV | 18.37% |
| Net CLTV | 17.98% |
| Protective Equity Cushion | $1,102,000 |
| Borrower Credit Score | 642 |
Property Highlights
| Field | Value |
|---|---|
| Property Type | Multi-Family Quadruplex (4 Units) |
| Location | Lynwood, Los Angeles County, CA 90262 |
| Year Built | 1965 |
| Living Area | Approximately 4,000 SF |
| Lot Size | 7,073 SF |
| Bedrooms / Bathrooms | 12 Bedrooms / 4 Bathrooms |
| Construction Type | Wood Frame, Two-Story |
| Occupancy | Non-Owner-Occupied (NOO) |
| Occupancy Status | Fully Leased (4 Tenants) |
| Monthly Rental Income | $7,700 |
| As-Is BPO Value | $1,350,000 |
Frequently Asked Questions
Why would an investor choose a 2nd Trust Deed on a multi-family property in Los Angeles County?
A 2nd Trust Deed on a well-collateralized multi-family property can offer investors an attractive yield while remaining protected by substantial underlying equity. In this Lynwood transaction, the combined loan-to-value was just 18.37%, meaning the collateral asset’s value would need to fall dramatically before the 2nd lien position was exposed to loss. For yield-seeking investors comfortable with the lien position, this type of deal can deliver higher returns than conventional fixed-income alternatives, backed by a tangible, income-producing real estate asset in a high-demand urban market.
How does a cash-out refinance on a non-owner-occupied property differ from a standard refinance?
A cash-out refinance on a non-owner-occupied investment property allows the borrower to access accumulated equity in the property and deploy those funds for business or investment purposes rather than personal use. Unlike a rate-and-term refinance, which simply adjusts loan terms, a cash-out refinance increases the total debt against the property. Hard money lenders like Mortgage Vintage evaluate these transactions primarily on the equity position and the income-generating strength of the collateral rather than relying solely on borrower creditworthiness, making them accessible to investors whose credit profile may not meet conventional lending standards.
What makes Lynwood, California an attractive market for multi-family trust deed investments?
Lynwood is a densely populated urban city in Los Angeles County with consistent demand for rental housing driven by its proximity to major employment corridors, freeway access via the I-105 and I-710 interchange, and established community infrastructure. These fundamentals support stable tenant occupancy and help underpin property values for multi-family assets in the area. For trust deed investors, strong rental demand and location durability in markets like Lynwood contribute to the collateral quality that supports secured lending positions.
Mortgage Vintage, Inc. is a California DRE-licensed hard money lender and trust deed investment company with deep expertise in structuring creative, equity-based real estate loans across a wide range of property types and borrower profiles throughout California. With years of hands-on experience underwriting multi-family, residential, and commercial trust deed transactions, Mortgage Vintage brings institutional-quality diligence and transparency to every deal it funds.