Loan Amounts My second trust deed amounts vary between $50,000 and $500,000. These fixed rates have NO PRE PAY PENALTY but do have minimum interest features--usually half of the term.
Combined Loan to Value
The combined loan to value I most prefer is 55.000% though will look at solid transactions that exceed that CLTV: There are many determining factors, including my loan size in relationship to the senior debt, quality of the borrower, loan term, desireability and class of asset.
Rate and Fees
The loan charges are between 1-5 points depending on loan size, rate and closing parameters. Administrative and third party vendor fees range between $1000 - $3000 depneding on transaction complexity, size and closing paremeters. Rate considerations are dictated by the risk perceived as a junior debt, market conditions and opportunity cost. Typically, my rates are between 11.000% - 15.000%
Areas and Asset Class
Being local is very important and allows for better service. Counties I focus on are Los Angeles, Orange, Santa Barbara, San Bernardino and Riverside. Assets that I am most interest in are:
Apartments
Office (classes a-b)
Land
Commercial retail
Car wash/laundrymats/fuel stations
Hospitality/Recreational (golf courses, hotels, amusement parks, arcades)
Board and Care/Senior Living/Covelescent
1-4 Residential (more robust underwriting)
Any real estate asset in escrow
Farms (all counties)