A recent private money closing in Oakland, CA reflects the continued demand for renovation-focused financing in strong Bay Area markets. In this transaction, a $600,000 private money loan was funded in the second trust deed (2nd TD) position at a 63.5% loan-to-value ratio, offering a balanced combination of yield and collateral support.
The loan was priced at an 11.75% interest rate, consistent with current market conditions for short-term private lending particularly for second-position loans where lenders typically require a higher return to offset lien priority risk. Even so, the leverage on this deal remained disciplined, keeping the transaction below 65% LTV and preserving a meaningful equity cushion.
Renovation-driven loans are often time-sensitive, and private capital can provide the speed and flexibility traditional lenders may not. In this case, the borrower was able to secure funds in a junior lien position while maintaining conservative leverage, positioning the project for a potential refinance, sale, or long-term hold once improvements are completed.
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