A lot of California homeowners are sitting on a problem. They've got
significant equity built up in their property — maybe six figures
worth — but they're also holding a first mortgage at 3% or 3.5% from
2020 or 2021. Refinancing that loan today means trading it in for
something close to 7%. Nobody wants to do that.

So what do you do when you need capital and your equity is locked up?

A second trust deed might be the answer.

Here's the basic idea. Your first mortgage stays exactly where it is.
We put a second lien on the property behind it. You get access to the
equity you've built without touching the first loan. The rate on the
second will be higher — that's just how it works — but the math often
makes a lot more sense than blowing up a low-rate first mortgage just
to get at your equity.

We've been placing these loans for close to 50 years. Second trust
deeds aren't new, but they're seeing a real resurgence right now. We
see it in our deal flow every month. Property owners needing to cover
a business expense, fund a renovation, bridge a gap, pay off a tax
lien — they're coming to us because the bank won't do a second and
they can't stomach refinancing.

What do you need to qualify? Primarily, it comes down to the equity in
your property. We look at the combined loan-to-value — your first
mortgage balance plus what we're lending, divided by the property
value. Strong equity protects both you and the investor behind the
loan.

We can also move fast. A bank isn't going to get a second done in two
weeks. We can.

If you're sitting on equity and feeling like your hands are tied, they
probably aren't. Give me a call and let's talk through what's
possible.

Jeff LaMotte is President of Val-Chris Investments, a California
private money lender since 1975