Mortgage Vintage successfully funded a $955,000 business-purpose cash-out blanket 2nd Trust Deed loan secured by two owner-occupied luxury single-family residential properties — a prestigious estate in Rolling Hills, Los Angeles County, and a sprawling residential estate in Palo Cedro, Shasta County, California. This Rolling Hills blanket loan was structured as a cross-collateralized second lien, providing business-purpose capital at 12.50% with a 24-month term and strong protective equity across both collateral properties.
Why This Rolling Hills Blanket Loan Stood Out
- FICO scores of 766 and 691, reflecting creditworthy owner-occupant borrowers with demonstrated financial standing
- Combined As-Is BPO valuation of $9,500,000 across two luxury residential estates, yielding a conservative 63.52% CLTV and 63.17% Net CLTV
- Net protective combined equity of approximately $3,498,943 after accounting for all senior liens
- Both first trust deeds on the collateral properties were current and in good standing with a national institutional lender at below-market fixed rates
- 12.50% investor rate with 6 months guaranteed interest and 3 months prepaid interest, providing immediate income certainty for trust deed investors
- Minimum investment of $47,750, accessible to a broad range of accredited investors through the CrowdTrustDeed platform
- Loan proceeds directed toward business-purpose investment activities, with repayment anticipated from business revenues within the 24-month term
Property Description
Rolling Hills Luxury Residence (Primary Collateral)
The primary collateral was a luxury ranch-style single-family residence situated within the prestigious gated community of Rolling Hills on the Palos Verdes Peninsula in Los Angeles County. Built in 1981 and set on approximately 1.39 acres, the estate offered approximately 5,874 square feet of living space, five bedrooms, five bathrooms, and an attached three-car garage. The home had been extensively renovated and featured spacious entertaining areas, modern interior finishes, and expansive views of the greater Los Angeles area. Interior highlights included a lower-level den with a projection and bar area, a dedicated office, and a separate guesthouse and ADU with a bedroom, bathroom, and kitchenette. Outdoor amenities encompassed a swimming pool and spa, covered barbecue area, a custom gym, and equestrian facilities including a horse stable. An independent interior BPO completed in October 2026 rated the property’s overall condition, exterior appeal, interior appeal, location, views, and floor plan as excellent, with no visible problems noted, and concluded an As-Is estimated value of $7,500,000.
Palo Cedro Residential Estate (Additional Collateral)
The supplementary collateral was a beautifully maintained Tudor-style residential estate situated on approximately 9.57 acres in Palo Cedro, Shasta County. Built in 1975, the residence offered approximately 4,899 square feet of living space, five bedrooms, approximately four-and-one-half bathrooms, and a detached three-car garage. The property featured a long paved driveway, mature landscaping, irrigated and fenced pastures, expansive lawns, and well-appointed outdoor living areas. Additional amenities included an in-ground swimming pool, an outdoor kitchen and barbecue area, covered patios, a full-size tennis court, a detached metal workshop, a barn, garden areas, and an owned solar system. The interior had recently undergone quality upgrades including updated bathrooms, flooring, doors, fixtures, and finishes. An independent interior BPO completed in October 2026 rated the exterior appeal, interior appeal, lot characteristics, views, location, and floor plan as excellent, noting no obvious repairs were required and an As-Is estimated value of $2,000,000. This estate provided substantial supplementary security for the transaction.
Investment Summary
This completed transaction exemplified the type of well-collateralized, income-producing trust deed investment that Mortgage Vintage structures for its network of accredited investors. The loan was cross-collateralized by both luxury residential estates, with a combined As-Is BPO valuation of $9,500,000. At 63.52% CLTV and 63.17% Net CLTV, investors benefited from meaningful equity cushion relative to the loan balance. The 24-month term, 12.50% investor rate, 6-month guaranteed interest provision, and 3-month prepaid interest feature offered investors both yield certainty and downside protection. For borrowers, the structure provided efficient access to capital for business-purpose investment activities. Investors who participated through Mortgage Vintage’s hard money blanket loan program were secured by two substantial California real estate assets spanning Los Angeles and Shasta counties.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $955,000 |
| Loan Type | Blanket 2nd Trust Deed (Cross-Collateralized) |
| Deal Type | Cash-Out, Business Purpose |
| Interest Rate | 12.50% |
| Lien Position | 2nd TD |
| Loan Term | 24 Months |
| Combined CLTV | 63.52% |
| Net CLTV | 63.17% |
| Guaranteed Interest | 6 Months |
| Prepayment Interest | 3 Months |
| Minimum Investment | $47,750 |
| Occupancy | Owner-Occupied |
| Net Protective Equity | ~$3,498,943 (Combined) |
Property Highlights
| Field | Value |
|---|---|
| Property Type | Two Single-Family Residences (Blanket) |
| Primary Collateral Location | Rolling Hills, Los Angeles County, CA |
| Additional Collateral Location | Palo Cedro, Shasta County, CA |
| Rolling Hills — Year Built | 1981 |
| Rolling Hills — Living Area | ~5,874 SF |
| Rolling Hills — Lot Size | ~1.39 Acres |
| Rolling Hills — Bedrooms / Baths | 5 Bed / 5 Bath |
| Rolling Hills — As-Is BPO Value | $7,500,000 |
| Rolling Hills — Style | Luxury Ranch-Style Estate |
| Palo Cedro — Year Built | 1975 |
| Palo Cedro — Living Area | ~4,899 SF |
| Palo Cedro — Lot Size | ~9.57 Acres |
| Palo Cedro — Bedrooms / Baths | 5 Bed / ~4.5 Bath |
| Palo Cedro — As-Is BPO Value | $2,000,000 |
| Palo Cedro — Style | Tudor-Style Residential Estate |
| Combined As-Is BPO Value | $9,500,000 |
Frequently Asked Questions
What is a blanket 2nd trust deed loan and how does cross-collateralization work?
A blanket 2nd trust deed loan is a single loan secured by more than one property simultaneously, with the lien recorded in second position behind any existing first mortgages on each property. Cross-collateralization means that all properties pledged to the loan secure the entire loan balance collectively — if one property were liquidated, the proceeds would apply to the full outstanding debt, not just a portion allocated to that property. In this completed transaction, Mortgage Vintage structured the loan across two distinct California luxury estates, giving investors broader collateral coverage than a single-property loan would provide.
Why would a borrower choose a hard money 2nd TD for business-purpose cash-out instead of a conventional refinance?
Hard money 2nd trust deed loans offer speed, flexibility, and accessibility that conventional refinancing often cannot match for business-purpose borrowers. Conventional lenders typically require extensive income documentation, lengthy underwriting timelines, and may not permit business-purpose cash-out against owner-occupied residences. A hard money lender like Mortgage Vintage can evaluate the equity strength and overall loan profile holistically, fund quickly, and structure the loan around the borrower’s specific needs — such as preserving favorable existing first mortgages rather than disturbing them with a full refinance.
How does guaranteed interest protect trust deed investors in a short-term hard money loan?
Guaranteed interest is a provision that obligates the borrower to pay a minimum number of months of interest regardless of when the loan is repaid. In this transaction, investors received 6 months of guaranteed interest, meaning that even if the borrower repaid the $955,000 loan in the first month, investors would still collect 6 full months of interest income at the 12.50% rate. Combined with the 3-month prepaid interest requirement, this structure gave investors immediate, predictable income from day one and protected against early payoff risk — a meaningful feature for those deploying capital into short-term 24-month trust deed instruments.
Mortgage Vintage, Inc. is a California DRE-licensed hard money lender and trust deed investment company with extensive experience structuring complex blanket loans, cash-out transactions, and multi-property cross-collateralized trust deeds for both borrowers and accredited investors. Our team applies rigorous underwriting standards, independent BPO valuations, and deep knowledge of California real estate markets to every transaction — delivering transparent, investor-grade opportunities backed by real property security.