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Success story · Rancho Santa Fe

Additional capital. The first mortgage stayed in place.

How a second trust deed helped Rancho Santa Fe borrowers clear business-purpose liens and access working capital.

Single-family residence · Rancho Santa Fe, California

The funded Rancho Santa Fe residence: a white two-story home with a tile roof, arched entry and balcony, tall palms and a lawn beside a circular concrete drive.
Loan amount
$3,500,000
Combined LTV
58.37%
Existing first
$2,600,000, left in place
Value above combined balances
$4,350,000

Past performance does not indicate future results.

For these Rancho Santa Fe property owners, accessing additional capital came with an important condition: preserve the first mortgage.

The borrowers needed to pay off existing business-purpose liens and obtain working capital. Their residence offered equity to support the request, but a full refinance would have replaced first-position financing they wanted to keep.

Alliance Portfolio structured a $3,500,000 second trust deed around that priority.

  1. 01The challenge

    Unlock equity while preserving the first

    The question was how to make the equity in the property available without disturbing the existing first mortgage.

    The 9,305-square-foot residence was appraised at $10.45 million, with an existing $2.6 million first trust deed. The borrowers wanted additional financing that would address their business needs while leaving that loan and its original terms intact.

  2. 02The structure

    A second trust deed behind the existing first

    Alliance Portfolio funded a $3,500,000 second trust deed behind the existing $2.6 million first mortgage, for combined loan balances of $6.1 million against the $10.45 million appraised value. That is a combined loan-to-value ratio of 58.37%.

    The difference between the appraised value and the combined balances is approximately $4.35 million, before transaction costs.

    The second position allowed Alliance Portfolio to address the borrowers’ capital needs without requiring a full refinance.

  3. 03The solution

    Liens retired, working capital provided

    At closing, the prior business-purpose liens were retired and the transaction provided working capital. The $3.5 million loan funded the lien payoffs and provided working capital; it does not represent the amount available solely for working capital.

    The existing first trust deed remained in place on its original terms.

  4. 04The result

    Capital for the business, continuity for the first mortgage

    The completed transaction retired the business-purpose liens and gave the borrowers access to working capital while preserving the financing they wanted to retain.

    For borrowers with equity in California real estate, this story illustrates how a second trust deed can address business-purpose financing needs while keeping an existing first mortgage in place.

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