Challenge / Opportunity: Borrower was seeking a new 2nd mortgage loan for soft-story retrofit (Seismic) and to add a single unit to the property to bring the unit count from 12 to 13 units. The Borrowers also needed a 10 year term on the 2nd mortgage.
Solution Provided: Redwood Mortgage was able to make a loan of $430K in 2nd position with a 10 year term, enabling the borrowers to keep their low interest bank first. The Redwood Mortgage loan provided the capital for the needed improvements. No construction holdbacks, all loan proceeds were disbursed. The CLTV was 22%.