Lending Overview

General Loan Terms

The terms listed are generally representative of our lending strategy but not wholly inclusive thereof. Every transaction is underwritten on a case-by-case basis and terms listed may not apply. Terms are subject to change.

Loan Amount

$1 to $10 million

Loan Type

1^st Trust Deed only

LTV/LTC

Up to 60%

Interest Rate

Double digit note rates required (12% – 20%)

Amortization

Interest only

Loan Term

1-2 years, including extensions

Geographic Areas

Western USA, especially California

Loan Transaction Types

Purchase Money Loans

Financing provided to a buyer specifically for purchasing property. This enables the buyer to complete the transaction without exhausting their own funds upfront.

Refinances

Involves replacing an existing loan with a new one, typically to secure better terms and rates.

Note Purchases

Refers to the acquisition of an existing promissory note (loan) from the current lender or note holder. The buyer assumes the rights and obligations of the lender, effectively stepping into the lender’s role in receiving payments and enforcing terms of the loan.

Sale Leasebacks

Involves a property owner selling their asset to a buyer and simultaneously leasing it back from the new owner. This allows the seller to free up capital while retaining control of the property.

Representative Loan Transactions

1,656-acre 1^st Trust Deed loan in Tehama County in the amount of $600,000. This was a refinance for a farmer/cattle grazer. The note rate was 15%.

14-acre 1^st Trust Deed loan in La Quinta consisting of 40 recorded residential lots (Y acre – Y2 acre). This was a purchase from a homebuilder who had the entire project pre-sold to an institutional homebuilder. It was essentially a flip. The property was worth $5,100,000. The loan amount was $3.1 million. Note rate was 12%.

15-acre 1^st Trust Deed loan in North Indio consisting of 113 vacant residential lots with no HOA fees, no CFD fees. The loan amount was $3 million with an estimated value of nearly $6.8 million.

60-acre 1^st Trust Deed Loan in Rancho Mirage, California. The property included 119 residential homes paying HOA fees. The ground lease income on the 60 acres was +$240,000.00 per year. The loan amount was $2.1 million, and the estimated value was $4,370,000. This was a refinance. Note rate was 12.5%.