Borrower and long-time business owner, architect, and designer sought a cash-out 1st TD to build an ADU on the subject property in historic Pioneertown, CA in San Bernardino County. The ‘Modern Wolfden,’ as the borrower calls it, will be a custom-built, modern 2 bedroom / 2 bathroom ADU with added privacy but also distinguished views and open floor plan kitchen and living area. The borrower plans to build the ADU so that it is similar to that of the main house while also adding covered patio areas and additional outdoor amenities. Once the project is finished, the property will be able to host larger groups which will maximize rental income and will be a perfect place for the borrower to showcase their modern indoor-outdoor architecture.


The subject property currently consists of a newly built SFR at 1,170 sf with a floor plan comprised of 6 total rooms including 2 bedrooms and 2.5 bathrooms and sits on a very large 2.4 acre lot. Construction quality and materials are superior, from roofing, insulation, drywall and flooring. The kitchen and bathroom materials have been imported and the entire home is uniquely designed. Subject interior has custom tile floors that extend onto the exterior patio. The exterior has desert natural landscape and a large tiled patio that overlooks the valley. The subject has a built-in hot tub with a cold tub for therapeutic purposes. The proposed ADU will be similarly built in style but will be slightly smaller at 975 sf with 2 bedrooms and 2 bathrooms. The borrower plans to use all the same superior construction quality and materials when building the ADU. When all is finished, the two buildings will be a total of 2,145 sf and will consist of 4 bedrooms, 4.5 bathrooms, 2 kitchens, luxury outdoor amenities, hot tubs, outdoor showers, a pool and more.

After completion of the ADU construction, the subject property will continue to be one of the highest rated Airbnb’s in the area with more space to maximize revenue.  Pioneertown is near the Joshua Tree National Park which as tremendous AirBnb and VRBO demand.  The exit strategy for our loan is to refinance into a conventional loan after construction completion.  Mortgage Vintage provided the original construction loan on this property for the SFR and the borrower performed flawlessly.

What we like about this Trust Deed opportunity:

  • 10.50% Annualized Return
  • Long-time successful business owner, architect, and designer
  • 6 months Guaranteed Interest
  • 4 months Prepaid Interest
  • Entire construction budget of $310,000 in funds control
  • Previous successful Mortgage Vintage borrower

$861,250 1st TD @ 10.50%, 63.80% LTV on ARV, 35.16% Net LTV, ADU Const., 6 mo. guar., 12 mo. term, Pioneertown CA