Second Loans

Program Details

Our Second Lien financing options include:

Loan Amounts: $500,000 to $2,500,000

Lien Position: 2nd deed of trust

First Lienholder:

  • Insured Depository Institution (bank, credit union, etc.)
  • Other institutional lenders


  • Target: 12%
  • Range: 10% to 14%


  • 75%Target = sub-75%
  • Higher case-by-case on value add


  • 2 to 2.5 points
  • Broker fees not to exceed Wilshire’s points

Property Types:

  • Multifamily (5+ units)
  • Office
  • Warehouse
  • Light Industrial
  • Senior Assisted Living

Transaction Types:

  • Purchase
  • Refinance
  • Cash Out
    • Target = cash going back into the property to create value
    • Cash out for other purposes on cash flowing properties at lower CLTVs

Geographic Location:

  • Target = Western US
  • Will consider mortgage (judicial foreclosure states) at lower loan to values


  • Personal guaranty required


  • In place, cash flow must support the capital stack


  • No Prepayment Penalty


  •  Term: 2 year fixed, I/O with balloon


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Recent Second Lien Transactions

2Asset 1

Loan Amount: $500,000
Purpose: Refinance
Lien Position: Second
Closing Time: 28 Days

First: $1,235,000

A good customer of the bank faced a maturity date on their existing loan. However, the refinancing request exceeded the bank’s loan-to-value threshold. Working with the banker, Wilshire funded into a combined loan facility consisting of a new first loan made by the bank with an accelerated amortization schedule and a new interest-only second loan made by Wilshire. Accelerating the amortization on the first loan would reduce the combined loan to meet the bank’s LTV threshold for a new loan by the bank in 18 months.

2Asset 2

Loan Amount: $520,000
Purpose: Cash Out Refinance
Lien Position: Second
Closing Time: 10 Days

First: $2,600,000

The purpose of the loan was to facilitate the restricting of the capital stack through a new first and second mortgage.  In addition to paying off the prior debt, a portion of the proceeds was used to buy-out an equity partner in the transaction. 

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