Equity Cash Out 2nd Private Mortgage for LA Rental Home

Private money loan secured by a 2nd trust deed on a single family home in West L.A., close to Santa Monica. The Borrower recently inherited the property and needed the funds to expand her jewelry business. The appraised value was $975K and with an existing 1st mortgage balance of $245K, the combined LTV for this 2nd mortgage was just 43%. The Borrower planned to sell the property or refinance with a conventional mortgage which will pay off the loan within 3 years. The interest rate was 9.99% (interest only), and it closed in December 2014.