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California Private Capital Authority Center

California Private Capital:
Structured for the
Deal That Matters.

When conventional financing cannot move, does not fit, or has run out of room, private capital is often the only viable path. Troy Mire provides equity-based lending solutions across California for investors, property owners, and the professionals who advise them.

Troy Mire · DRE 01199870 · NMLS 1795353 · California Real Estate Broker & Mortgage Professional · No financing guaranteed · Subject to underwriting

Credentials & Volume
$250M+
Combined real estate and mortgage transaction volume
20+
Years in California real estate and private lending
Dual
Licensed Real Estate Broker and Mortgage Professional
5
Southern California counties with active transaction history
TROY MIRE CA PRIVATE CAPITAL SPECIALIST DRE 01199870 NMLS 1795353 562-244-7963 troymireteam.com 20+ Years · $250M+ Volume · Southern California BRIDGE LOANS 7–21 Day Close DSCR FINANCING No Income Docs Required FORECLOSURE RESCUE NOD · Trustee Sale Solutions INVESTOR FINANCING SERVICE AREA Los Angeles Orange County Riverside San Bernardino Ventura CALIFORNIA
Authority Hub

Explore California Private Capital

This page is the central authority resource for California private capital financing. Each topic below represents a dedicated knowledge area supported by in-depth educational content. Use this hub to navigate the full scope of private capital solutions available across California.

Bridge Loans

Short-term financing for time-sensitive acquisitions, property stabilization, and situations where conventional timelines cannot meet closing requirements.
California Bridge Loan Guide →

DSCR Financing

Income-property qualification based on rental income rather than personal tax returns. Designed for investors who cannot or choose not to document personal income conventionally.
California DSCR Guide →

Foreclosure Rescue

Private capital solutions for California property owners facing imminent foreclosure who have equity but cannot access conventional financing fast enough.
Foreclosure Rescue Guide →

Notice of Default Solutions

Understanding the California NOD timeline and which private capital solutions are available at each stage from recordation through the reinstatement window.
California NOD Guide →

Investor Financing

Non-owner-occupied financing for California real estate investors including portfolio acquisition, rental stabilization, and equity-based capital deployment.
California Investor Financing Guide →

Fix and Flip Financing

Acquisition and renovation capital for value-add residential projects. Structured with draw schedules and underwritten on after-repair value across Southern California.
Coming: Fix and Flip Guide →

Construction Financing

Ground-up development and ADU construction financing in California. Milestone-based draws, after-construction underwriting, and builder track record evaluation.
California Construction Financing Guide →

Second Trust Deeds

Junior lien financing that accesses equity without disturbing an existing first mortgage. Business purpose requirements, compliance distinctions, and structure considerations.
California Second Trust Deed Guide →

Commercial Financing

Private capital for retail, industrial, mixed-use, office, and multifamily properties of five or more units across California. NOI-based underwriting and sponsor evaluation.
California Commercial Financing Guide →

Business Purpose Lending

California regulatory framework for investment and business purpose real estate loans. Classification, disclosure requirements, and compliance distinctions from consumer lending.
California Business Purpose Lending Guide →

Probate Financing

Private capital solutions for California probate-related real estate transactions requiring court-authorized financing, beneficiary buyouts, and estate equalization structures.
California Probate Financing Guide →

Bankruptcy Related Financing

Private capital solutions for real estate transactions intersecting with bankruptcy proceedings. Requires coordination with legal counsel and case-specific evaluation.
Coming: Bankruptcy Financing Guide →

Title Issue Financing

Equity-based lending for California properties with lien complications, judgment clouds, or ownership disputes where conventional financing is unavailable while title clears.
Coming: Title Issue Financing Guide →

Cross-Collateral Structures

Multi-property pledge structures that amplify borrowing capacity across a California real estate portfolio. Lien position management, title coordination, and risk evaluation.
Coming: Cross-Collateral Guide →
Education

What Is Private Capital in California Real Estate?

Private capital refers to real estate financing provided by non-bank sources: private investors, bridge lending funds, and specialty mortgage companies. Unlike conventional bank loans, private capital transactions are underwritten primarily on asset value and equity position, not borrower income documentation or credit score thresholds.

In California, private capital lending operates under specific regulatory frameworks depending on the transaction type and lending structure. Business purpose loans, investor financing, and hard money transactions follow different rules than consumer mortgage loans. Understanding that distinction protects both borrowers and lenders.

Private capital fills the gaps that conventional lending cannot reach: properties in distress, time-sensitive closings, borrowers who cannot document income through traditional channels, investors who have exceeded conventional portfolio limits, and transactions that require structures no institutional lender will approve.

It is not a last resort. For experienced investors, it is a deliberate strategic tool. For property owners in distress, it can be the only available solution. In both cases, structure matters more than rate.

The Core Distinction

Conventional lenders approve borrowers. Private capital lenders approve assets. The shift from income-based to equity-based underwriting is what opens financing options that banks cannot provide.

How It Is Structured

Most California private capital loans are secured by first or second trust deeds against real property. Terms range from a few months to several years. Interest-only structures are common. Exit strategy is the defining underwriting variable.

Who Provides It

Sources include private individual investors, family offices, bridge lending funds, specialty mortgage platforms, and licensed hard money lenders. Each has different criteria, pricing, and transaction preferences.

How It Is Regulated

California private capital lending is regulated by the Department of Real Estate and the Department of Financial Protection and Innovation depending on the license type. Business purpose transactions carry distinct requirements from consumer loans.

The Process

How a California Private Capital Transaction Works

Private capital moves faster than conventional financing because the underwriting process is fundamentally different. Most transactions progress through four defined stages.

Scenario Evaluation

The property, equity position, existing liens, borrower circumstance, and exit strategy are reviewed. Most deals are structured conceptually in the first conversation. Bringing clear information accelerates this stage significantly.

Capital Source Matching

Based on the transaction profile, the appropriate private capital source is identified. Rate, loan-to-value tolerance, term, and closing speed vary meaningfully across lenders. Matching the right capital to the right deal is a core advisory function.

Term Sheet and Structure

A term sheet outlines loan amount, rate, fees, term, and conditions. This is where structure is confirmed, business purpose documentation is established, and California-specific disclosure requirements are addressed.

Underwriting and Close

Appraisal or valuation is ordered. Preliminary title report is reviewed. Escrow is opened. Well-structured private capital transactions close in 7 to 21 days in most cases. Complexity and title condition affect this window.

California Private Capital Solutions

Financing Structures Built for Real Transactions

Private capital is not a single product. It is a category of financing that covers multiple structures depending on the asset, the borrower's situation, and the transaction objective.

Short Term · Acquisition · Rescue

Bridge Loans

Short-term financing that bridges the gap between an immediate capital need and a longer-term solution. Used when timing is critical, conventional financing is unavailable, or a transaction must close before a property sells or refinances.

Bridge loans in California typically run 6 to 24 months. They are most effective when the borrower enters with a clear, documented exit strategy. Without one, a bridge loan creates a maturity risk that must be managed.

Acquisition · Renovation bridge · Time-sensitive close · Payoff rescue
Investor · Income Property · No W2

DSCR Financing

Debt Service Coverage Ratio loans qualify on the income-producing potential of the property, not the borrower's personal income. Designed for investors who own multiple properties or cannot document income through conventional channels.

DSCR is calculated by dividing the property's gross rental income by the total monthly debt service. Most lenders look for a minimum of 1.1 at origination. No portfolio count limits apply.

Rental property · Investor portfolio · Non-W2 income profiles
Value Add · Renovation · Resale

Fix and Flip Financing

Financing for investors who acquire, renovate, and resell residential properties. Structures typically include the acquisition amount plus a renovation reserve funded through draw schedules tied to construction progress.

Underwriting focuses on the after-repair value rather than the current as-is value. Lender familiarity with California renovation timelines and cost structures matters significantly at the draw stage.

Residential rehab · Value-add acquisition · Distressed property improvement
Junior Lien · Equity Access · Portfolio

Second Trust Deeds

A second trust deed is a loan secured by real property in a junior lien position behind an existing first mortgage. Allows property owners to access equity without disturbing a favorable first mortgage or triggering a full refinance.

In California, second trust deeds used for investment or business purposes operate under business purpose lending guidelines with different disclosure requirements than consumer home equity products.

Equity access · Debt restructuring · Short-term capital needs
Non-Owner-Occupied · Portfolio · Income

Investor Financing

Financing for non-owner-occupied properties where the borrower's intent is income generation, appreciation, or capital deployment. Covers single-family rentals, small multifamily, and commercial real estate acquisitions by investor borrowers.

Business purpose lending rules apply in most cases, allowing more flexible underwriting outside consumer lending regulations. No Fannie Mae portfolio count limits restrict eligibility.

Rental acquisition · Portfolio expansion · Non-owner-occupied purchase
Ground Up · ADU · Development

Construction Financing

Private capital construction loans fund ground-up development or major structural renovation. Typically structured with an initial land or acquisition advance followed by construction draws disbursed at defined project milestones.

Underwriting focuses on the after-construction value, the builder's track record, the realism of the project budget, and the viability of the exit strategy at completion.

Ground-up residential · Commercial development · ADU construction
Portfolio · Multiple Assets · Leverage

Cross-Collateral Structures

Cross-collateralization pledges two or more properties as security for a single loan. Increases borrowing capacity when a single property lacks sufficient equity on its own, combining equity positions across multiple assets.

Proper title review across all pledged properties and clear lien position documentation are essential. Most commonly used by investors with established portfolios seeking to maximize available capital.

Portfolio borrowers · Equity amplification · Complex acquisition structures
Compliance · Investment · Structure

Business Purpose Lending

California law distinguishes between consumer purpose loans and business purpose loans. When real estate financing is used primarily for business or investment purposes, it falls under a different regulatory framework with greater structural flexibility.

Proper classification and documentation of business purpose is required for compliance and protects both parties. Misclassification carries legal and regulatory risk for lenders and borrowers alike.

Investment properties · Commercial assets · Business-related real estate
Commercial · Retail · Multifamily

Commercial Private Capital

Private capital for commercial properties including retail, industrial, mixed-use, office, and multifamily assets of five or more units. Underwriting focuses on net operating income, occupancy, lease terms, and sponsor experience.

Private capital is often the most practical path for commercial transactions requiring faster closing than traditional lenders can deliver, or for properties in transition that conventional underwriting cannot accommodate.

Commercial acquisition · Refinance · Stabilization bridge financing
Distressed Property Solutions

Foreclosure Rescue and Notice of Default Solutions

When a property owner receives a Notice of Default, time becomes the most critical variable. California's foreclosure timeline creates defined windows in which financing solutions are possible. Once those windows close, options narrow substantially.

Private capital plays a specific role in distressed situations where conventional lenders cannot move fast enough, will not lend on the property's current condition, or where the borrower's profile creates barriers to institutional financing.

Notice of Default (NOD)

A recorded NOD initiates California's nonjudicial foreclosure process. The reinstatement period following an NOD provides a window to bring the loan current or refinance entirely. Private capital can fund a payoff or reinstatement when conventional lenders cannot act fast enough.

Notice of Trustee Sale (NOTS)

Once a Notice of Trustee Sale is recorded, the auction is typically 21 days away. This is the narrowest window in which private capital can intervene. These situations require experienced handling and immediate action.

Pre-Foreclosure Equity Situations

Property owners with significant equity who are behind on payments often have more options than they realize. Private capital can bridge to pay off the existing loan, stabilize the property, and create time for a sale or refinance.

Trust Sale Financing

Properties held in trust that require a beneficiary buyout, estate equalization, or retention financing often need private capital when the transaction does not fit conventional lending criteria.

Probate-Related Financing

Probate transactions involve court oversight that creates timing uncertainty. Private capital lenders experienced with California probate can structure loans to accommodate the process.

Title Issue Financing

Properties with lien complications, judgment clouds, or ownership disputes may qualify for private capital while title is being resolved, using the property's equity as the primary underwriting basis.

Bankruptcy-Adjacent Financing

Real estate financing intersecting with bankruptcy proceedings requires coordination with legal counsel. Private capital solutions are possible in certain circumstances and require case-specific evaluation. Troy Mire works directly with bankruptcy and real estate attorneys in these situations.

The California Foreclosure Timeline

California uses a nonjudicial foreclosure process administered through a trustee. The minimum timeline from Notice of Default to trustee sale is approximately 111 days. Where a property sits within that timeline determines what solutions remain available.

Private capital is most effective when engaged early. Later-stage intervention is possible but carries more constraints and risk for all parties involved.

Discuss a Distressed Property Situation
California NOD Timeline Overview
Day 1
Notice of Default recorded with county recorder. Foreclosure process begins.
Day 90
Earliest date a Notice of Trustee Sale can be recorded following the NOD.
Day 111+
Earliest date the trustee sale can occur. Most sales occur 3 to 5 months after NOD.
5 Days
Before the trustee sale, reinstatement right typically expires. Time is critical.
NOW
Every day of delay reduces available options. Early engagement provides the most flexibility.
Decision Framework

When Private Capital Makes Sense Versus Conventional Financing

Private capital is not the right solution for every transaction. Understanding when it applies, and when it does not, is part of working with an experienced advisor.

Situation Why Conventional Financing Struggles How Private Capital Addresses It
Time-sensitive close required Conventional underwriting runs 30 to 60 or more days Private capital closes in 7 to 21 days in most cases
Property in distressed condition Most conventional lenders require habitability standards Private capital underwrites on as-is value and renovation potential
Self-employed or irregular income DTI-based underwriting disadvantages non-W2 profiles DSCR and asset-based structures qualify without personal income
Notice of Default recorded Conventional lenders will not fund into a property in default Private capital can fund reinstatement or full payoff within the reinstatement window
Investor property portfolio limits Fannie Mae limits conventional investment property financing DSCR and investor loans have no conventional portfolio count limits
Title complications or liens Conventional lenders require clear title before funding Some private capital lenders can fund while title is being resolved
Probate or trust transaction Court timelines create conventional financing barriers Private capital lenders experienced with probate can accommodate the process
Equity-rich but credit-challenged Credit score thresholds eliminate viable borrowers Equity-based underwriting prioritizes asset position over credit profile
Short-term bridge to sale or refinance Conventional loans are structured for long terms with early payoff penalties Private capital is designed for short-term use with clear exit strategies
Non-standard transaction structure Conventional lenders cannot deviate from published guidelines Private capital evaluates transactions on individual merit and structure
Who This Resource Serves

Property Owners, Investors, and the Professionals Who Advise Them

Private capital solutions serve a wider audience than most people assume. The need for equity-based financing arises across many client types and professional disciplines.

Real Estate Investors

Acquisition, bridge, DSCR, fix-and-flip, and portfolio financing without conventional count limits or income documentation barriers.

Distressed Property Owners

Foreclosure rescue, NOD resolution, equity-based refinance, and bridge financing to preserve ownership or manage an exit.

Real Estate Attorneys

Financing solutions for probate, trust, divorce, and estate transactions where conventional lending is not available or appropriate.

Estate and Trust Professionals

Beneficiary buyouts, estate equalization, retention financing, and trust sale structures requiring rapid capital solutions.

CPAs and Financial Advisors

Structuring guidance for clients whose real estate capital needs fall outside conventional financing and require a licensing-aware advisor.

Bankruptcy Attorneys

Coordination on bankruptcy-adjacent real estate transactions where private capital is part of a broader resolution strategy.

Real Estate Professionals

Financing solutions for clients whose transactions require private capital to close, with professional communication throughout.

Business Owners

Commercial and investment real estate financing for business owners who own property and need capital structured around the asset rather than the business income statement.

The Dual-Licensed Advantage

Why Dual Licensing Changes How Private Capital Deals Are Structured

Most private capital professionals operate from one side: either brokerage or lending. Troy Mire holds both licenses, which shapes how every transaction is evaluated from the first conversation.

01
Structure Before Rate

Rate is visible. Structure is invisible until the deal fails. A properly structured private capital transaction creates a clear path to the exit. An improperly structured one creates a maturity default. The structure conversation happens first in every engagement.

02
Equity Is the Qualification

When equity is present and the exit is real, most private capital transactions have a path forward. When equity is insufficient, no amount of creativity changes the math. Honest evaluation of the equity position is the foundation of every recommendation.

03
Timing Controls Everything

In distressed situations, the window for private capital shrinks with every passing day. In competitive markets, the difference between a funded deal and a lost deal is often measured in hours. Urgency is taken seriously and execution speed is a core capability.

California Service Area

Southern California Private Capital Coverage

Troy Mire provides private capital advisory and financing across California with primary concentration in Southern California counties where market depth, property values, and transaction volume support active private lending activity.

Los Angeles County
Primary market
Orange County
Primary market
Riverside County
Active market
San Bernardino
Active market
Ventura County
Active market

Transactions outside Southern California are evaluated case by case. Contact directly to discuss geographic eligibility for specific transactions.

Real-World Applications

Common California Private Capital Scenarios

Private capital is most useful when the situation is specific. These are the scenarios where equity-based lending is most frequently the right answer across California.

Time-Critical Acquisition
Investor Needs a 10-Day Close
The Challenge

A California real estate investor identifies an off-market opportunity requiring closing within 10 business days. The seller will not extend. Conventional financing cannot meet the timeline.

Why Conventional Struggles

Most bank and institutional lenders require 30 to 60 days minimum for underwriting, appraisal, and funding. A 10-day close is structurally impossible through conventional channels.

Private Capital Solution

A bridge loan secured by the subject property closes within the required window. The investor closes, takes control of the asset, and refinances into permanent financing after stabilization.

Foreclosure Defense
Borrower Received a Notice of Default
The Challenge

A California property owner falls behind on mortgage payments and receives a Notice of Default. The property has significant equity but the owner cannot qualify for conventional refinancing due to income documentation issues.

Why Conventional Struggles

Conventional lenders will not refinance a property in default. The income documentation barriers that caused the original problem prevent the conventional solution.

Private Capital Solution

A private capital lender evaluates the equity position and funds a payoff of the defaulted loan within the reinstatement window. The owner regains standing and has time to pursue a longer-term resolution.

Late-Stage Foreclosure
Property Heading to Trustee Sale
The Challenge

A Notice of Trustee Sale has been recorded. The auction is 18 days away. The property has substantial equity. The owner has not been able to arrange financing in time.

Why Conventional Struggles

No conventional lender will engage at this stage. The timeline, the default status, and the complexity make institutional financing structurally impossible in the available window.

Private Capital Solution

Private capital specialists who understand the California foreclosure timeline can evaluate rapidly. If equity supports it and all parties move with urgency, a payoff before the trustee sale may be achievable. Early engagement is critical.

Portfolio Growth
Investor Exceeds Conventional Financing Limits
The Challenge

A California real estate investor owns multiple properties and has reached or exceeded Fannie Mae's conventional investment property financing limits. Additional acquisition financing is unavailable through conventional channels.

Why Conventional Struggles

Fannie Mae and Freddie Mac guidelines impose portfolio limits on conventional investment property financing. Once reached, institutional lenders typically cannot approve additional investment property loans for that borrower.

Private Capital Solution

DSCR loans and investor financing programs have no conventional portfolio count limits. The qualification is based on the income-producing potential of each property, not the borrower's total financed property count.

Value-Add Acquisition
Property Needs Major Renovation
The Challenge

An investor identifies a Southern California property requiring substantial renovation before it will be habitable or income-producing. The as-is condition prevents conventional financing.

Why Conventional Struggles

Conventional lenders require properties to meet habitability and safety standards at origination. Properties requiring major renovation fail appraisal conditions and cannot be funded conventionally in their current state.

Private Capital Solution

Fix-and-flip or rehabilitation bridge financing evaluates the property on its after-repair value. The loan structure includes acquisition funding plus a renovation draw reserve, enabling the investor to complete the project and exit to sale or permanent financing.

Income Documentation
Self-Employed Borrower with Complex Income
The Challenge

A self-employed California property owner or investor has significant assets and real estate equity but cannot produce two years of qualifying W2 or tax return income sufficient for conventional underwriting.

Why Conventional Struggles

Conventional underwriting requires documented, verifiable income that meets debt-to-income ratios. Self-employed borrowers who maximize business deductions often show insufficient net income on paper.

Private Capital Solution

DSCR loans qualify on property income rather than personal income. Asset-based and equity-based lending programs focus on what the borrower owns and what the property produces rather than what the tax return shows.

Probate Real Estate
Probate Property Requiring Financing
The Challenge

A California probate estate includes real property that a beneficiary wants to retain or that requires financing as part of the settlement process. Court timelines create uncertainty that conventional lenders will not accommodate.

Why Conventional Struggles

Conventional lenders are not equipped to navigate probate court timelines, authorization requirements, and the documentation complexity specific to estate-related transactions in California.

Private Capital Solution

Private capital lenders experienced with California probate can structure loans that accommodate court authorization requirements and estate-specific closing processes. Coordination with the estate's legal counsel is standard.

Trust Owned Property
Trust-Held Property Requiring Capital
The Challenge

A California property held in a living trust or family trust requires financing for a beneficiary buyout, estate equalization between heirs, or capital access without selling the underlying asset.

Why Conventional Struggles

Trust ownership creates documentation and title requirements that many conventional lenders are not equipped to process. Beneficiary conflicts or complex trustee arrangements can further complicate conventional underwriting.

Private Capital Solution

Private capital lenders can structure equity-based loans against trust-held California real estate when equity is sufficient, trustee authority is documented, and the purpose of the financing qualifies under business purpose guidelines.

Title Complications
Title Issue Delaying or Blocking Closing
The Challenge

A California property has a title complication: an unresolved lien, a judgment cloud, a chain of title gap, or an ownership dispute. The owner needs capital now while title is being resolved.

Why Conventional Struggles

Conventional lenders require clear title before funding. Any unresolved title issue stops a conventional loan in its tracks, regardless of the property's equity position or the borrower's credit profile.

Private Capital Solution

Some private capital lenders will fund against a California property's equity while title is actively being resolved, provided the equity cushion is sufficient and the title resolution process has a defined path and realistic timeline.

Legal Complexity
Bankruptcy-Related Financing Situation
The Challenge

A California property owner or investor with real estate holdings is navigating a bankruptcy proceeding. Real property equity exists, and financing may be part of the reorganization or resolution strategy.

Why Conventional Struggles

Conventional lenders will not engage with borrowers in active bankruptcy proceedings. The legal complexity, court oversight, and automatic stay provisions make institutional financing structurally unavailable in most cases.

Private Capital Solution

Private capital solutions adjacent to bankruptcy proceedings are evaluated case by case in coordination with bankruptcy counsel. Where court authorization is obtained and equity supports the structure, certain financing arrangements may be possible.

Commercial Real Estate
Commercial Property Stabilization Bridge
The Challenge

A California commercial property is in transition: below stabilized occupancy, under renovation, or between anchor tenants. The owner needs bridge financing during the stabilization period before qualifying for permanent commercial financing.

Why Conventional Struggles

Commercial lenders underwrite on stabilized income. Properties below threshold occupancy or in active renovation do not produce the net operating income required for conventional commercial loan approval.

Private Capital Solution

Private capital bridge financing evaluates the property's stabilized or after-renovation value and income potential rather than its current operating metrics. This allows the owner to fund the stabilization period and reach the metrics required for permanent financing.

Equity Access
Second Trust Deed Request
The Challenge

A California property owner or investor wants to access equity in a property that already carries a favorable first mortgage at a low rate. A cash-out refinance would eliminate the existing low rate. A second trust deed would preserve it.

Why Conventional Struggles

Conventional second mortgage programs have strict income documentation requirements, credit thresholds, and combined LTV limits that often exclude investors or borrowers with complex income profiles.

Private Capital Solution

A private capital second trust deed accesses equity without disturbing the existing first mortgage. For business purpose transactions, underwriting focuses on the equity position and the exit strategy rather than personal income documentation.

Multi-Asset Leverage
Cross-Collateral Transaction
The Challenge

A California real estate investor wants to acquire a new property but the acquisition property alone does not carry enough equity to support the required loan amount at acceptable LTV thresholds.

Why Conventional Struggles

Conventional lenders underwrite each property individually. Cross-collateral structures across multiple properties are not a conventional lending concept and are not available through institutional channels.

Private Capital Solution

A cross-collateral structure pledges equity from two or more California properties to support a single loan. This amplifies borrowing capacity without requiring a sale and is structured with clear lien positions and title review across all pledged assets.

Pre-Sale Bridge
Fast Bridge Loan Before Property Sale
The Challenge

A California property owner needs capital now but has a property listing that will generate the payoff proceeds within 90 to 180 days. They need a short bridge to access equity before the sale closes.

Why Conventional Struggles

Conventional home equity products are not designed for 90 to 180-day terms and carry prepayment penalties that make short-term use expensive. Underwriting timelines also make them impractical when the capital need is immediate.

Private Capital Solution

A short-term private capital bridge loan against the property's equity provides the needed capital. The exit strategy is clear: the sale proceeds repay the loan. The structure, timeline, and terms align with the actual transaction rather than fighting against it.

Educational Case Studies

Representative California Private Capital Financing Scenarios

These are illustrative educational examples based on transaction types common across Southern California. They are not specific client cases. Names, addresses, and confidential details are not used. These examples are provided to demonstrate how private capital structures address real-world financing challenges.

Southern California
Second Trust Deed: Equity Access Without Refinancing
SituationSouthern California property owner with a 3.25% first mortgage wanted to access $280,000 in equity for business expansion. A cash-out refinance would have replaced the existing rate with a significantly higher one.
ChallengePreserving the existing first mortgage rate while accessing junior lien equity. Conventional second mortgage programs required extensive income documentation the borrower could not cleanly produce.
StructureBusiness purpose second trust deed in junior lien position. Underwritten primarily on the equity cushion above the combined first and second balance. Short-term with a clear refinance exit once business cash flow was documented.
Outcome: The owner accessed needed capital, preserved the low-rate first mortgage, and maintained control of the business expansion timeline without disrupting the existing debt structure.
Orange County
Bridge Loan: Time-Sensitive Investment Acquisition
SituationOrange County investor identified an off-market residential property requiring a 12-day close. The seller had multiple interested parties and would not extend the escrow period under any circumstances.
ChallengeNo conventional lender could underwrite, appraise, and fund in 12 days. The investor needed certainty of funding before making a non-refundable deposit.
StructureFirst trust deed bridge loan. Property evaluated on as-is value with a defined renovation scope. 12-month term with a DSCR refinance exit upon stabilization. Documentation completed within 48 hours of scenario evaluation.
Outcome: The investor closed within the required window, acquired the property at the agreed price, and executed the planned renovation and stabilization strategy on schedule.
Los Angeles County
Investor Financing: Portfolio Expansion Beyond Conventional Limits
SituationA Los Angeles County real estate investor had reached the Fannie Mae limit on conventionally financed investment properties. Multiple additional acquisition opportunities existed in markets with strong rental demand.
ChallengeConventional financing was fully exhausted at the portfolio level. Each additional property would need a non-conventional solution that qualified on property performance rather than the borrower's aggregate conventional exposure.
StructureDSCR financing on each additional acquisition. Each loan qualified independently on the subject property's rental income against the debt service. No portfolio count restriction applied. Income documentation not required.
Outcome: The investor continued expanding the portfolio through DSCR financing, with each property qualifying independently based on its own cash flow metrics.
Southern California
Foreclosure Rescue: NOD Resolution Before Trustee Sale
SituationA Southern California property owner received a Notice of Default following a period of financial disruption. The property had over $400,000 in equity above the defaulted loan balance. The owner had 90 days remaining in the reinstatement period.
ChallengeThe owner could not refinance conventionally due to the default status and income disruption. Traditional lenders would not engage with a property in foreclosure status regardless of the equity position.
StructurePrivate capital payoff of the defaulted loan in full. New first trust deed at a loan amount representing approximately 62% of the appraised value. 18-month interest-only term with a sale or conventional refinance exit.
Outcome: The property owner preserved ownership, satisfied the defaulted debt, and gained time to stabilize finances and pursue a permanent solution without the foreclosure completing.
Inland Empire
DSCR Portfolio: Self-Employed Investor Qualification
SituationA self-employed Inland Empire investor owned five rental properties and was acquiring two additional units. Tax returns showed low net income due to aggressive depreciation and business deductions. Conventional qualification was not feasible.
ChallengeTwo years of tax returns produced debt-to-income ratios that exceeded conventional thresholds despite strong actual cash flow from the existing portfolio. The borrower could demonstrate real income but not through standard documentation.
StructureDSCR financing on each acquisition property individually. Each loan qualified on the subject property's lease income against debt service. No personal income documentation was required for qualification. Each property stood on its own.
Outcome: Both acquisitions proceeded on DSCR terms. The investor continued building the portfolio without the documentation barrier that conventional underwriting would have imposed.
Orange County
Probate Financing: Beneficiary Retention of Inherited Property
SituationAn Orange County probate estate included a single-family residence with significant equity. One beneficiary wanted to retain the property. Other beneficiaries required cash equalization payments from the estate. The court had authorized the transaction.
ChallengeThe retaining beneficiary needed to finance the buyout of co-beneficiaries' interests. Conventional lenders were not equipped to process the court authorization documents or work within probate timing constraints.
StructurePrivate capital loan secured by the subject property. Loan amount supported the equalization payments to co-beneficiaries. Title transferred to the retaining beneficiary with court approval. Coordination with the estate's probate attorney throughout.
Outcome: The beneficiary retained the property. Co-beneficiaries received equalization payments from loan proceeds. The estate closed on schedule without requiring a sale of the underlying asset.
Los Angeles County
Construction Financing: ADU Development
SituationA Los Angeles County homeowner with substantial equity in a primary residence wanted to develop an accessory dwelling unit to create rental income. Traditional lenders offered slow timelines and complex requirements that delayed the project.
ChallengeThe project was classified as business purpose due to the rental income intent. Conventional construction products were either unavailable or involved timelines that pushed the project completion well past the target rental date.
StructurePrivate capital construction loan against the equity in the subject property. Business purpose documentation established. Milestone-based draw schedule aligned to construction progress. Exit via permanent refinance or DSCR loan upon completion and rental stabilization.
Outcome: Construction completed on the planned timeline. The ADU was rented, producing income that supported the DSCR refinance exit into longer-term permanent financing.
Southern California
Cross-Collateral: Amplifying Borrowing Capacity Across a Portfolio
SituationA Southern California investor identified a new acquisition requiring $650,000. The acquisition property alone produced an LTV of 78%, above typical private capital thresholds. The investor held two other properties with clean title and substantial equity.
ChallengeThe acquisition property alone could not support the loan at acceptable leverage. A traditional approach would have required a larger down payment, reducing the investor's liquidity and limiting additional opportunities.
StructureCross-collateral structure pledging the acquisition property plus one of the investor's existing properties. Combined equity across both assets produced an acceptable combined LTV. Lien positions documented clearly across all pledged properties. 18-month term.
Outcome: The investor acquired the new property without reducing liquidity by the full purchase price differential. The cross-collateral structure preserved capital for additional opportunities while funding the acquisition.
Professional Collaboration

Professional Referral Relationships and Transaction Coordination

Private capital transactions rarely exist in isolation. A property owner facing foreclosure has an attorney. An estate with real property has a probate professional. An investor building a portfolio has a CPA. A business owner using real estate as collateral has a financial advisor. In each case, the private capital solution is one component of a larger professional engagement.

Troy Mire works directly with the professional advisors surrounding a transaction because coordination across disciplines is what produces the best outcome. A financing structure that undermines the legal strategy is not a good structure. A loan that creates a tax problem is not a good solution. Capital that arrives too late because of poor communication is not useful capital.

The goal is for private capital to fit cleanly into the broader professional relationship rather than creating friction, complexity, or conflict with the work other professionals are already doing for the client.

If you are a professional with a client who may need a private capital solution, direct contact is the fastest path to clarity. The conversation is confidential, no-cost, and focused on whether and how private capital can support what you are already working on.

Real Estate Attorneys

Transaction coordination on distressed property situations, foreclosure defense, title complications, NOD resolutions, and complex lien structure transactions. Financing that supports the legal strategy rather than conflicting with it.

Estate and Probate Attorneys

Court-authorized financing for beneficiary buyouts, estate equalization, and property retention within California probate proceedings. Coordination with the estate timeline and documentation requirements.

Bankruptcy Attorneys

Private capital evaluation for real estate-holding clients navigating bankruptcy proceedings. Case-specific analysis in coordination with bankruptcy counsel on what is structurally possible and legally permissible.

CPAs and Tax Professionals

Financing structures that account for the client's tax situation. Business purpose documentation that aligns with the CPA's entity and income reporting strategy. Capital solutions that do not create unintended tax events.

Trust and Estate Professionals

Financing for trust-held California real estate including living trusts, family trusts, and complex ownership structures. Trustee authorization documentation and trust-specific closing requirements handled with relevant experience.

Financial Advisors

Real estate capital solutions for clients whose financial plan includes leveraging property equity for business, investment, or liquidity purposes. Financing structures that complement the broader financial advisory relationship.

Real Estate Professionals

Financing solutions for clients whose transactions require private capital to close: time-sensitive acquisitions, distressed properties, off-market deals, and situations where conventional financing is unavailable or too slow.

California Market Intelligence

California Private Capital Market Context

Private capital decisions do not happen in a vacuum. Market conditions, interest rate environments, investor activity, and equity trends all shape which structures are available, what they cost, and how effective they are at solving real problems. Understanding the current environment is part of structuring intelligently.

Interest Rate Environment

The spread between private capital rates and conventional mortgage rates narrows and widens based on broader monetary policy. When conventional rates rise, private capital's rate premium becomes relatively less significant. When conventional rates are low, the premium is more visible. What matters more than rate in most private capital situations is whether the deal gets done at all and whether the structure creates a viable path to the exit.

Southern California Equity Conditions

Southern California's long-term property value appreciation has created significant equity positions across the existing housing stock. In high-value markets including Los Angeles County and Orange County, equity-based private capital solutions can support substantial loan amounts even at conservative LTV thresholds. Equity depth is one of the defining characteristics of the Southern California private capital market compared to lower-value regions.

Investor Activity

California real estate investor activity influences private capital demand cycles. When acquisition activity is high, bridge loan and fix-and-flip demand increases. When rates create affordability pressure for traditional buyers, investor acquisitions of distressed and value-add properties increase. DSCR lending remains consistently active across market cycles because portfolio investors continue acquiring regardless of rate environments when the cash flow math supports the transaction.

Distressed Property Trends

Notice of Default filings in California track with broader economic conditions, employment disruption, and the residual effects of financial events. Elevated NOD activity increases demand for foreclosure rescue financing and NOD solutions. Equity-rich properties in distress represent some of the most time-sensitive private capital situations because the solution exists in the asset but requires rapid execution to be accessed before the foreclosure window closes.

Financing Availability

The availability of private capital in California is influenced by the broader credit environment, capital flows into real estate lending funds, and the risk appetite of private investors. During periods of institutional credit tightening, private capital often becomes more important because conventional channels narrow while transaction demand does not. Understanding the capital source landscape at any given moment is part of matching the right lender to the right transaction.

Housing Inventory and Deal Flow

California's persistent housing inventory constraints have kept competition for quality assets elevated, making speed of execution a continuous competitive advantage for investors. Off-market transactions, short timelines, and seller-favorable terms all increase the value of private capital's speed advantage over conventional financing. In compressed markets, the ability to close in 10 days is not just convenient, it is the difference between acquiring the asset or not.

Stay Current on California Real Estate Market Intelligence

Troy Mire publishes regular market analysis covering California real estate conditions, financing trends, investor activity, and private capital market updates. Current market awareness improves every financing decision.

Troy Mire Market Weekly →
Expanding Authority Ecosystem

Future California Private Capital Authority Topics

This authority center is the parent resource for an expanding library of California private capital educational content. Each guide below represents a dedicated, in-depth resource covering a specific financing category in depth. As each guide is published, it will link back to this hub and provide the detailed information that property owners, investors, and professionals need to make informed decisions.

01
California Bridge Loan Guide

Comprehensive guide to bridge financing in California covering structure, qualifying criteria, LTV thresholds, exit strategies, and how to evaluate whether a bridge loan is the right solution for a specific transaction.

Authority Guide · Coming
02
California DSCR Loan Guide

In-depth DSCR guide covering how DSCR is calculated, which properties qualify, how DSCR loans differ from conventional investor financing, and strategies for optimizing DSCR ratios on California rental properties.

Authority Guide · Coming
03
California Foreclosure Rescue Guide

Complete guide to private capital foreclosure rescue solutions in California including timeline analysis, reinstatement mechanics, payoff structuring, and what property owners with equity need to know before the trustee sale.

Authority Guide · Coming
04
California Notice of Default Guide

Definitive resource on the California NOD process from recordation through reinstatement window to trustee sale. What each stage means, what options exist at each stage, and how private capital fits within the foreclosure timeline.

Authority Guide · Coming
05
California Second Trust Deed Guide

Complete guide to second trust deeds in California covering lien positions, business purpose requirements, combined LTV considerations, consumer versus investor applications, and compliance distinctions from home equity products.

Authority Guide · Coming
06
California Construction Financing Guide

Ground-up and major renovation financing guide covering draw schedules, after-construction underwriting, builder qualification, ADU-specific considerations, and exit strategy planning for California development projects.

Authority Guide · Coming
07
California Probate Financing Guide

Dedicated guide to private capital financing for California probate real estate transactions covering court authorization, trustee and executor authority, beneficiary buyout structures, and coordination with probate legal counsel.

Authority Guide · Coming
08
California Investor Financing Guide

Comprehensive investor financing resource covering DSCR, portfolio lending, investor eligibility, non-owner-occupied qualifying criteria, and strategies for California real estate investors at every stage of portfolio development.

Authority Guide · Coming
09
California Business Purpose Lending Guide

Regulatory and practical guide to business purpose lending in California covering the legal distinction from consumer loans, documentation requirements, compliance framework, and how business purpose classification affects available financing structures.

Authority Guide · Coming
10
California Commercial Financing Guide

Private capital guide for California commercial real estate covering retail, industrial, multifamily, mixed-use, and office financing. NOI-based underwriting, stabilization bridge structures, and sponsor evaluation for commercial private capital transactions.

Authority Guide · Coming
Frequently Asked Questions

California Private Capital: 30 Common Questions Answered

These are the questions property owners, investors, attorneys, CPAs, and referral partners ask most often about private capital financing in California.

What is private capital lending in California?
Private capital lending in California refers to real estate financing provided by non-bank sources including private investors, bridge lending funds, and specialty mortgage companies. These loans are underwritten primarily on asset value and equity rather than borrower income and credit scores. They are subject to California real estate and mortgage lending law and require proper licensing and disclosure depending on the transaction type.
How fast can a private capital loan close in California?
Private capital loans in California commonly close in 7 to 21 business days for straightforward transactions with clean title, clear ownership, and sufficient equity. More complex transactions involving distressed properties, multiple lien positions, or title complications may take longer. Speed depends on the lender, the transaction complexity, how quickly borrower documentation is provided, and escrow and title turnaround times. No specific timeline is guaranteed.
What loan-to-value ratios are typical in California private capital?
Loan-to-value ratios for California private capital loans typically range from 55% to 75% of the property's current appraised or as-is value depending on property type, lien position, location, and transaction risk. First position loans generally qualify for higher LTVs. Second position and distressed property transactions carry lower LTV thresholds to account for increased risk. Specific LTV availability is transaction-dependent and not guaranteed.
What is a DSCR loan and how does it qualify?
A DSCR loan qualifies based on the income produced by the subject property rather than the borrower's personal income. DSCR is calculated by dividing the property's gross rental income by the total monthly debt payment including principal, interest, taxes, insurance, and HOA dues. A DSCR of 1.0 is break-even. Most lenders prefer a minimum of 1.1 to 1.25 at origination. This structure is designed for real estate investors and is classified as business purpose lending.
Can I get a private capital loan with bad credit?
Credit is a factor in most private capital transactions but carries less weight than in conventional lending. Private capital underwriting focuses primarily on equity position, exit strategy, and deal structure. Borrowers with credit challenges who have significant equity in California real estate may qualify for financing that conventional lenders would decline. Each transaction is evaluated individually. Credit score alone does not determine eligibility.
What is a bridge loan and when should I use one?
A bridge loan is a short-term financing instrument designed to bridge the gap between a current capital need and a longer-term solution. In California real estate, bridge loans are used when a borrower needs to close before a property sells, when a property does not yet qualify for permanent financing, when conventional underwriting cannot move fast enough, or when interim capital is needed during renovation or stabilization. Bridge loans are most effective when the exit strategy is clearly defined before funding.
What is a Notice of Default and can I still get financing after one is recorded?
A Notice of Default is a legal document recorded with the county recorder that formally initiates California's nonjudicial foreclosure process. The reinstatement period runs from the NOD date until five business days before the scheduled trustee sale. During this period, private capital can potentially fund a payoff or reinstatement of the existing loan if the property has sufficient equity and a clear exit strategy. Financing options become progressively more limited as the foreclosure timeline advances.
What is a second trust deed and how does it differ from a home equity loan?
A second trust deed is a loan secured by real property in a junior lien position behind an existing first mortgage. Consumer home equity products are subject to federal and California consumer protection laws. Business purpose second trust deeds are governed by different disclosure and underwriting standards, providing greater structural flexibility. The distinction matters significantly for both compliance and transaction structure. Understanding which regulatory framework applies requires evaluating the purpose of the loan proceeds.
What does business purpose lending mean in California?
In California, a loan is classified as business purpose when the proceeds are used primarily for business or investment purposes rather than personal, family, or household use. Business purpose loans on real estate are exempt from certain consumer protection provisions of the Truth in Lending Act and California's Homeowner Bill of Rights, allowing for more flexible underwriting and structuring. Proper documentation of business purpose is required and protects both lender and borrower. Misclassification carries legal and regulatory risk.
What are typical interest rates on California private capital loans?
Private capital interest rates in California are higher than conventional mortgage rates and reflect the speed, flexibility, and risk tolerance these loans provide. Rates vary depending on loan-to-value ratio, property type, lien position, transaction complexity, borrower profile, and market conditions. Quoting a rate range without evaluating a specific transaction is not meaningful. Rates are discussed after the transaction is reviewed and a capital source is identified. No rate is guaranteed prior to a fully underwritten term sheet.
How much equity do I need to qualify for a private capital loan?
Most private capital lenders in California require the loan amount to represent no more than 60% to 70% of the property's current value, meaning the borrower has at least 30% to 40% equity as a cushion. The minimum varies by property type, location, lien position, and borrower circumstance. Properties in strong California markets with clear title and defined exit strategies are viewed more favorably. Properties with significant deferred maintenance or title complications require more equity to compensate for increased risk.
What is the difference between hard money and private capital?
Hard money is an older term describing asset-based real estate loans funded by private individuals or small funds, often at high rates and short terms. Private capital is a broader category that includes hard money but also covers bridge lending funds, specialty mortgage companies, and structured non-bank lending platforms that offer more competitive pricing, longer terms, and more sophisticated underwriting. The terms are often used interchangeably, but private capital implies a wider range of products and capital sources.
Can private capital stop a foreclosure in California?
Private capital may prevent a foreclosure by funding a reinstatement of the defaulted loan or a full payoff, provided the property has sufficient equity, the timeline allows for processing and closing, and all parties cooperate. The earlier private capital is engaged in the foreclosure process, the more options are available. Situations approaching the trustee sale date require urgent action and are not guaranteed to be solvable through financing. Time is the limiting factor.
What is cross-collateralization in real estate financing?
Cross-collateralization pledges two or more properties as security for a single loan, allowing a borrower whose single property lacks sufficient equity to combine equity positions across multiple assets. This structure requires careful title review, clear lien position documentation, and lender coordination across all pledged properties. It is most commonly used by investors with multiple properties who want to maximize available capital from an existing portfolio without selling any individual asset.
How does fix and flip financing work and what is a draw schedule?
Fix and flip financing provides short-term capital for investors acquiring and renovating residential properties for resale. The loan typically includes an initial acquisition advance at closing and a renovation reserve held by the lender. Renovation funds are released through a draw schedule in which the borrower requests disbursements as work is completed and inspected. Draw amounts, inspection requirements, and timeline expectations vary by lender. The total loan amount is underwritten based on the after-repair value of the property.
Can a property in probate qualify for private capital financing?
Probate properties can qualify for private capital in certain circumstances. Key considerations include whether the court has authorized the borrowing, who holds authority to act on behalf of the estate, the purpose of the financing, and whether the property has sufficient equity. The personal representative or administrator must document their authority to pledge the property as collateral. Working with California probate legal counsel throughout the process is essential for both compliance and execution.
Does Troy Mire work with attorneys and CPAs on private capital transactions?
Yes. Troy Mire regularly works with real estate attorneys, estate attorneys, bankruptcy attorneys, CPAs, trust professionals, and financial advisors whose clients need private capital solutions. Many complex transactions require coordination across multiple disciplines. Professionals who refer clients receive structured communication, transaction updates, and a collaborative approach that ensures the financing component supports the broader legal or financial strategy their client is pursuing.
What documentation is typically required for a private capital loan?
Private capital loans require significantly less documentation than conventional mortgages. Common requirements include a completed loan application, government-issued identification, a property appraisal or valuation, a preliminary title report, evidence of ownership, and documentation supporting the exit strategy. DSCR loans typically require rental income documentation or lease agreements. Business purpose intent should be documented in writing. Additional documentation may be required depending on the lender and transaction type.
What is an exit strategy and why does it matter?
An exit strategy is the borrower's defined plan for repaying the private capital loan at maturity. Common exits include selling the property, refinancing into a conventional or permanent loan, or using proceeds from another transaction. Exit strategy clarity is one of the most important underwriting variables in private capital because these are short-term instruments. A vague or unrealistic exit strategy is a significant underwriting concern and creates maturity default risk for the borrower.
Are private capital loans regulated in California?
Yes. Private capital real estate loans in California are subject to regulation under several frameworks depending on transaction type, lender structure, and borrower profile. Brokers arranging private capital loans must hold appropriate licensing through the California Department of Real Estate or the Department of Financial Protection and Innovation. Disclosure requirements and permissible fee structures are governed by California law. Business purpose and consumer purpose transactions carry different requirements. Working with a properly licensed professional is essential.
What is the difference between a first and second trust deed?
A first trust deed is the primary lien on a property and has priority over all other liens. In a foreclosure, the first trust deed holder is paid first. A second trust deed is in a junior position, paid only after the first is satisfied. Because of this subordinate position, second trust deed lenders carry more risk and typically lend at lower LTVs, charge higher rates, and are more selective about properties and borrowers. The combined LTV across both positions determines total leverage on the property.
How does private capital differ from conventional for rental properties?
Conventional financing for rental properties is subject to Fannie Mae and Freddie Mac guidelines that limit the number of financed properties, require significant reserves, and impose income documentation requirements that disadvantage self-employed investors. Private capital through DSCR products has no portfolio count limits, qualifies primarily on property income rather than personal income, and closes significantly faster. The tradeoff is higher rates and fees. For investors who have maximized conventional capacity or need speed and flexibility, private capital is often the more practical solution.
What happens if a private capital loan matures and I cannot pay it off?
If a private capital loan reaches maturity without being paid off or refinanced, the borrower is in default. The lender may initiate foreclosure, charge default interest, or offer an extension at revised terms. Whether an extension is available depends on the lender, current equity position, and whether the exit strategy is still viable. The best approach is proactive communication with the lender before maturity if an issue is anticipated. Extensions are not guaranteed and should not be assumed when structuring the original loan.
Can private capital be used for commercial real estate in California?
Yes. Private capital for California commercial real estate is available for retail, industrial, office, mixed-use, and multifamily properties of five or more units. Underwriting focuses on net operating income, occupancy, lease terms, and sponsor experience. Private capital is particularly useful for commercial transactions requiring faster closing than traditional commercial lenders can provide, properties in transition, or situations where the borrower profile creates conventional barriers. Commercial transactions are evaluated individually.
What makes Southern California a distinct private capital market?
Southern California is one of the most active private capital markets in the country due to high property values, significant equity across the existing housing stock, a large investor community, and consistent transaction volume. High property values mean that modest LTV thresholds still produce substantial loan amounts. The region's economic depth supports stronger exit strategies than most other markets. At the same time, the complexity and regulatory environment require professionals with direct Southern California transaction experience.
What role do escrow and title play in a private capital transaction?
Escrow manages the exchange of funds and documents, ensures conditions are satisfied, and coordinates the closing. Title provides insurance protecting both lender and borrower against ownership claims or lien issues not disclosed at closing. A preliminary title report is required before most private capital loans can be approved. Title insurance naming the lender as an insured party is standard. Title company responsiveness is particularly important in time-sensitive private capital closings where speed is a core requirement.
How does Troy Mire get paid on private capital transactions?
Compensation structure varies by transaction type. On mortgage transactions, compensation is disclosed through federally required loan disclosures in compliance with RESPA and California mortgage broker disclosure requirements. On real estate brokerage transactions, compensation is disclosed per California Department of Real Estate requirements. Troy Mire holds both a California Real Estate Broker license (DRE 01199870) and a Mortgage Professional license (NMLS 1795353), allowing proper licensing for the full range of transaction types. Specific compensation is disclosed at the appropriate stage of each transaction.
What is the minimum loan amount for California private capital?
Most private capital lenders in California have minimum loan amounts, commonly in the range of $100,000 to $250,000, though this varies by lender and transaction type. Very small loan amounts have limited private capital options due to fixed costs associated with origination, title, escrow, and servicing. Transactions below typical minimums are discussed on a case-by-case basis. High-value transactions in Southern California markets often benefit from greater lender competition and more flexible terms.
What is third position financing in California real estate?
Third position financing places a lender behind both a first and second trust deed. Third position loans carry significantly higher risk due to the subordinate position in a foreclosure scenario. As a result, third position financing is relatively rare in California, requires substantial equity above the first and second positions, and carries higher rates than either senior lien position. Most private capital lenders avoid third position unless the equity cushion above all existing liens is significant and the exit strategy is clear and near-term.
How do I get started with a California private capital transaction?
The first step is a brief conversation to evaluate the transaction. Have basic information ready: the property address, approximate current value, existing liens and balances, the purpose of the financing, and the intended exit strategy. That information allows for a meaningful first evaluation and an honest assessment of whether private capital is a viable solution. There is no cost and no commitment to that initial conversation. Contact Troy Mire directly at 562-244-7963 or by email at [email protected] to begin.
About Troy Mire

California Real Estate Broker. Mortgage Professional. Private Capital Specialist.

Troy Mire is a California-licensed Real Estate Broker and Mortgage Professional with more than 20 years of experience and over $250 million in combined real estate and mortgage transaction volume.

His focus is the intersection of real estate, mortgage, and private capital. Most private capital professionals specialize in one lane: either brokerage or lending. Troy Mire holds dual licensing that provides a comprehensive view of every transaction from both perspectives simultaneously. That perspective shapes how deals are evaluated, structured, and closed.

He works with property owners, real estate investors, attorneys, CPAs, trust professionals, and referral partners across Southern California on transactions that require equity-based financing, creative structuring, or expertise that conventional channels cannot provide.

His operating principles: timing matters, structure matters, equity matters. More deals fail from poor structure than from bad assets. That framing guides every client conversation.

DRE License
01199870
NMLS License
1795353
Experience
20+ Years
Transaction Volume
$250M+
Connect in 60 Seconds.
No Commitment. Just Clarity.

The first conversation is about evaluating your situation honestly. If private capital is the right solution, the structure will reflect it. If it is not, that will be communicated directly.