Updated 7/10: RATE INCREASED TO 13.75% - $2,300,000 2nd TD, SFR, 60.20% CLTV, 58.44% Net CLTV, Cash-Out Refi, NOO, 12 Mos. Term, 6 Mos. Guar. Int., 5 Mos. Prep. Int., Min. Inv. $71,875, Encino, Los Angeles County, CA

7/10 Update: Investor rate increased to 13.75%. Borrower is highly motivated to sell the property and will use the cash-out proceeds to complete cosmetic improvements designed to enhance the home’s presentation and generate stronger purchase offers. This offering includes 5 months prepaid interest and 6 months guaranteed interest. Property is vacant and was recently listed on the MLS at $8,495,000 and has been actively marketed for approximately 33 days. The borrower’s listing agent is conducting weekly showings. https://www.redfin.com/CA/Encino/3829-Hayvenhurst-Dr-91436/home/4927375  

Doctor and borrower is a long-established Southern California endodontist with nearly 50 years is seeking a 2^nd TD business purpose cash out refinance loan on this non-owner occupied SFR in the prestigious gated “Royal Oaks Colony” community in Encino, Los Angeles County. Borrower has owned and operated successful specialty dental practices, including Beverly Hills Dental Specialists in Beverly Hills. The purpose of this loan is to pay off an existing business purpose 2^nd TD $1,914,000 and the balance will be used to complete cosmetic improvements that are expected to enhance the property’s presentation and improve the likelihood of achieving stronger purchase offers.  This loan offers 6 months guaranteed interest. Borrower’s P&L dental practice shows it’s generating approximately $1.65 million in gross revenue over the past 12 months, producing an annual net profit of approximately $1.10 million, demonstrating cash flow to support the loan. Borrower intends to pay off this loan before 12-month loan term through sale of property.

The 1st TD loan is current, in good standing with a principal balance of $2,700,000 with a low 2.00% fixed rate, a PITI monthly payment of $15,412, payment includes taxes and insurance, maturing November 2026.

Property Description:

Subject located within the prestigious gated “Royal Oaks Colony” community in Encino, Los Angeles County, this custom two-story Mediterranean estate offers approximately 9,010 square feet of luxury living space on a 1.20-acre lot with scenic mountain views. The residence features 5 bedrooms, 6 full bathrooms, 2 half bathrooms, 12 total rooms, and an attached 4-car garage. Originally built in 1991, the home has been extensively upgraded with a newer clay tile roof, fresh stucco and exterior paint, custom gourmet kitchen, remodeled bathrooms, premium fixtures, marble and hardwood flooring, and high-end custom finishes throughout. The property includes six fireplaces, expansive indoor and outdoor entertaining areas, a large loft addition, covered patios, mature landscaping, and a private tennis court. The appraiser and a separate independent appraisal review both concluded an As Is Market Value of $8,305,000.

The property is located in one of Encino’s most sought-after luxury enclaves, adjacent to the prestigious Bel Air hillside market. Royal Oaks Colony is known for its gated privacy, estate-sized homes, tree-lined streets, and exceptional security, making it highly desirable among executives, entertainers, professional athletes, and high-net-worth homeowners. Residents enjoy convenient access to Ventura Boulevard’s upscale restaurants, boutiques, private schools, country clubs, and medical facilities, along with quick connectivity to the 405 Freeway and the Westside of Los Angeles.

Investment Summary: This is a 2^nd Trust Deed with 60.20% CLTV and 58.44% Net CLTV on a appraised value of $8,305,000. Our underwriting team ordered a secondary appraisal review that validated value of $8,305,000. This loan features with 6 months Guaranteed Interest and 5 months Prepaid Interest, yielding a 13.75% interest return. The minimum investment is $71,875. 

What we like about this Trust Deed opportunity:

• 13.75% Investor Rate (increased July 10 to attract full funding)
• Prestigious gated Royal Oaks Colony custom two-story Mediterranean estate in Encino, Los Angeles County
• Property is actively listed for sale at $8,495,000 with weekly showings; borrower is highly motivated to sell
• Loan proceeds will be used for cosmetic improvements designed to maximize buyer interest and strengthen purchase offers prior to sale
• Professional doctor-borrower with a long-established and reputable dental practice in Beverly Hills, California
• Existing 1st Trust Deed is current and in good standing with a fixed-rate mortgage
• Property is vacant and was recently listed on the MLS at $8,495,000 and has been actively marketed for approximately 33 days. The borrower’s listing agent is conducting weekly showings. https://www.redfin.com/CA/Encino/3829-Hayvenhurst-Dr-91436/home/4927375 
• 5 Months Prepaid Interest
• 6 Months Guaranteed Interest