SFR – Ben Lomond, CA (Primary residence)
The borrower was in need of quick capital in order to take advantage of an investment opportunity. 3rd position loans are extremely rare and challenging to underwrite. However, we agreed to this structure based on the following factors; the senior loans were both bank loans with low rates and extended maturity dates, the size of our loan in proportion to the 1st and 2nd was manageable, approximately 2 to 1 and 1 to 1, the combined LTV was only 51%, providing significant equity protection, and the borrower was very creditworthy. We were also comfortable with the business purpose of the loan, a well planned and feasible improvement project, which was located on the same street as the subject property.