Loan Purpose
Mortgage Vintage successfully funded a $386,000 blanket 2nd Trust Deed as a rate and term refinance — no cash out — secured by two non-owner-occupied investment single-family residences located in Temecula, Riverside County and Pico Rivera, Los Angeles County, California. The purpose of this loan was to retire an existing, performing 2nd TD that was maturing, allowing the borrower to continue holding both income-producing rental properties under a consolidated lien structure. The transaction was originated as a business-purpose investment loan structured for an experienced real estate owner and general contractor with a proven repayment history with Mortgage Vintage. After an initial two-year term of strong payment and collateral performance, the loan was extended for an additional 18 months at the same 13.00% investor rate, with an extension fee of 2.50% of the outstanding principal balance shared between investors and Mortgage Vintage. Fractional trust deed investors participated through the CrowdTrustDeed platform, with a single $38,600 fractional unit representing a 10.00% pro-rata interest in the total loan made available during the extension period.
Why This Temecula blanket loan Stood Out
- Repeat, successful Mortgage Vintage borrower with demonstrated on-time payment history across multiple loan cycles
- Strong combined collateral value of $2,750,000 supporting a conservative 60.04% CLTV and 59.53% Net CLTV, with combined net investor protection of $1,112,993
- Two income-producing investment SFRs generating a combined $16,700 per month in gross rental and short-term rental revenue
- Loan structure included 6 months of guaranteed interest and 3 months of prepaid interest, providing meaningful downside protection for trust deed investors
- 18-month extension approved following excellent collateral and payment performance throughout the original 2-year term
- Extension fee of 2.50% on the unpaid principal balance provided additional yield to participating investors at payoff
Property Description
The first collateral property, located in Temecula, California, was a single-story, ranch-style SFR with an attached guesthouse in excellent, newly remodeled condition. The main house offered approximately 2,300 square feet of living space while the guesthouse contributed an additional 1,400 square feet, for a combined total of 5 bedrooms and 4 bathrooms across both structures. The property was situated on 5.1 acres and featured a large pool, new spa, and a newly constructed BBQ entertainment area. At origination, the property averaged approximately $14,000 per month in short-term rental income through event hosting including weddings, corporate gatherings, and private parties. The existing 1st TD on the Temecula property carried a principal balance of approximately $875,000 at a 6.25% rate with a maturity date in April 2042. The second collateral property, located in Pico Rivera, California, was a single-story, ranch-style SFR in good condition, offering 1,512 square feet of living space with 3 bedrooms and 2 bathrooms on a 0.25-acre lot. This property generated $2,700 per month in long-term rental income. The existing 1st TD on the Pico Rivera property carried a principal balance of approximately $390,000 at a 5.50% rate with a maturity date in February 2038.
Investment Summary
This Temecula blanket loan was fully funded and has been marked complete. The $386,000 blanket 2nd Trust Deed was structured as a rate and term refinance at 13.00% annualized yield to investors, with a combined CLTV of 60.04% and a Net CLTV of 59.53% based on a combined broker price opinion value of $2,750,000. The loan was secured by two non-owner-occupied investment SFRs in Southern California and was extended for 18 months following two years of excellent borrower performance. Trust deed investors received a 13.00% annualized return throughout both the original term and the extension period, plus a pro-rata share of the 2.50% extension fee collected at payoff. Mortgage Vintage served as the originating lender and loan servicer throughout the life of this transaction.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $386,000 |
| Loan Type | Rate and Term Refinance (Blanket) |
| Lien Position | 2nd Trust Deed |
| Interest Rate | 13.00% Annualized |
| CLTV | 60.04% |
| Net CLTV | 59.53% |
| Combined BPO Value | $2,750,000 |
| Net Investor Protection | $1,112,993 |
| Loan Term | 18-Month Extension (after initial 2-Year Term) |
| Occupancy | Non-Owner Occupied (NOO) |
| Guaranteed Interest | 6 Months |
| Prepaid Interest | 3 Months |
| Extension Fee | 2.50% of UPB ($9,650 total, split 50/50 investors and Mortgage Vintage) |
| Minimum Fractional Investment | $38,600 (10.00% pro-rata interest) |
| Exit Strategy | Refinance |
Property Highlights
| Field | Value |
|---|---|
| Collateral Type | Blanket — Two Single-Family Residences (SFRs) |
| Property 1 Location | Temecula, Riverside County, CA |
| Property 1 Style | Single-Story Ranch-Style SFR + Guesthouse |
| Property 1 Living Area | 2,300 SF (Main House) + 1,400 SF (Guesthouse) |
| Property 1 Beds / Baths | 5 Bed / 4 Bath (Combined) |
| Property 1 Lot Size | 5.1 Acres |
| Property 1 Monthly Income | ~$14,000 / mo. (Short-Term / Event Rental) |
| Property 2 Location | Pico Rivera, Los Angeles County, CA |
| Property 2 Style | Single-Story Ranch-Style SFR |
| Property 2 Living Area | 1,512 SF |
| Property 2 Beds / Baths | 3 Bed / 2 Bath |
| Property 2 Lot Size | 0.25 Acres |
| Property 2 Monthly Income | $2,700 / mo. (Long-Term Rental) |
| Combined Monthly Income | $16,700 / mo. |
Frequently Asked Questions
What is a blanket 2nd Trust Deed and how does it differ from a standard 2nd TD?
A blanket 2nd Trust Deed is a single loan secured by two or more properties under one lien, rather than a separate loan on each individual property. In this transaction, Mortgage Vintage placed a single $386,000 2nd TD across two non-owner-occupied SFRs in Southern California. This structure allowed the borrower to consolidate financing and gave investors cross-collateralized protection from both properties, meaning the lender had recourse against either asset in the event of default. Blanket trust deeds are common in hard money lending when a borrower needs to leverage equity across a portfolio of investment properties.
How does a loan extension work for fractional trust deed investors?
When a hard money loan approaches maturity and the borrower is in good standing, the lender may offer an extension rather than requiring immediate payoff or initiating foreclosure proceedings. In this case, Mortgage Vintage approved an 18-month extension after reviewing the borrower’s consistent payment history and the continued strength of the underlying collateral. For fractional investors, an extension typically means their capital remains deployed at the same agreed-upon interest rate for the extended term. In this transaction, investors also received a pro-rata share of a 2.50% extension fee collected at payoff, providing an additional yield boost on top of the ongoing 13.00% annualized return.
What role does CLTV play in evaluating the safety of a 2nd Trust Deed investment?
Combined Loan-to-Value, or CLTV, measures the total debt secured against a property — including all senior liens — as a percentage of the property’s appraised or estimated value. A lower CLTV indicates more equity cushion protecting the trust deed investor. In this transaction, the 60.04% CLTV meant that roughly 40 cents of every dollar of combined property value sat above the total debt stack, providing meaningful loss protection. The Net CLTV of 59.53% further reflected the deduction of prepaid interest, tightening investor risk even further. When evaluating a 2nd TD investment in California, CLTV is one of the most important metrics because it determines how much equity would remain to satisfy the junior lien in a worst-case liquidation scenario.
Mortgage Vintage, Inc. is a California DRE-licensed hard money lender and trust deed investment company with extensive experience originating, underwriting, and servicing business-purpose real estate loans secured by California real property. With a track record spanning hundreds of funded trust deeds across diverse property types and markets throughout the state, Mortgage Vintage brings institutional-grade diligence and borrower vetting to every transaction it originates and manages on behalf of its trust deed investors.