Borrower needed a construction loan to add two fully permitted ADUs and complete a duplex renovation in Los Angeles.
- $460,000 business purpose 2nd TD
- $430,000 held in Funds Control
- 62.13% CLTV on appraised value
- 12.50% lender rate
- 24 months loan term
- 6 months guaranteed interest
This Los Angeles duplex sat in a prime area just east of Marina del Rey with room to grow. The borrower, a repeat client and experienced investor, had a clear plan to modernize the existing units and add two fully permitted ADUs at the rear. The goal was to create four well-designed rental homes in a high-demand neighborhood near schools, shopping, and the beach. Traditional financing is often too slow for transitional properties. The borrower had the vision, the team, and renovations already funded by the first trust deed holder. What was needed was construction capital to maintain progress and keep trades on schedule.
Mortgage Vintage delivered a $460,000 business purpose 2nd TD, with most proceeds placed in Funds Control and released as milestones were completed. This structure kept the project organized, vendors paid, and investor capital protected. The loan included six months of guaranteed interest and three months prepaid. Work progressed steadily. Existing units advanced toward completion, while ADU construction followed in sequence. The result will be four income-producing residences that maximize the value of the lot and appeal to renters.
The property moved from a duplex under renovation to a cohesive four‑unit investment, and the borrower has already completed a successful conventional refinance. The project exited our loan smoothly, allowing the borrower to secure long‑term financing and capture the full value of the improvements.
A seasoned Mortgage Vintage investor successfully transformed a Los Angeles duplex by renovating the existing units and constructing two new ADUs to expand rental income. Mortgage Vintage provided the construction capital through a business purpose 2nd TD that kept the project on schedule. The borrower has now closed on a conventional refinance and exited the loan.
The Subject:
- Address: Los Angeles, CA
- Type: Duplex with Planned ADU Expansion
- Layout (After Construction): 4 rental units totaling 3,949 SF
- Lot Size: 7,410 SF
- Condition: Duplex under renovation; ADUs to be built
The Scenario:
A previous Mortgage Vintage borrower with a 704 FICO score returned to secure a 2nd Trust Deed loan for continued property improvements. The existing duplex, located in a desirable Los Angeles neighborhood just east of Marina Del Rey and Playa Del Rey, was renovated with funds from the 1st TD holder. The borrower’s plan is to build two fully permitted 3BR/3BA ADUs in the rear, transforming the property into a four-unit income-producing investment. This property became an upgraded duplex and the newly constructed ADUs offer strong rental potential and a total projected monthly income of $15,500. The borrower’s exited the private money loan via a conventional refinance when construction was completed.
The Solution:
Mortgage Vintage provided a $460,000 2nd Trust Deed at 62.13% CLTV on the appraised value of $2,350,000. The loan included six months of guaranteed interest and three months of prepaid interest, and $430,000 of the loan proceeds were placed in Funds Control to be disbursed as construction progresses. With a strong location, attractive projected rents, and a borrower with proven performance, this trust deed offered a compelling opportunity for all.
The Numbers:
- Appraised Value: $2,350,000
- Loan Amount: $460,000 (2nd TD)
- CLTV: 62.13%
- Net CLTV: 43.15%
- Funds Control Allocation: $430,000
- Monthly Gross Rental Income (Projected): $15,500
