In September 2017, SDC Capital funded a cash-out refinance of a family-owned multi-tenant retail center in Lafayette, CA. The owners needed the funds to complete renovations of the property that were long overdue. The broker who brought us this deal initially requested a cash-out loan secured in 2nd position, but that plan changed once it was determined that subordinate financing required approval from the 1st lien lender – approval the lender was unwilling to give after nearly one month of deliberation. Now short on time and shorter on funds to pay their contractor, the borrowers approached us regarding the refinance of their 1st lien loan. To avoid any further delays by requiring the borrower to get an indemnity package approved by the title company to obtain mechanics lien coverage on the lender’s title policy, SDC Capital mitigated the loss of priority risk through our due diligence and we closed the loan quickly without an appraisal. The broker was happy as his clients’ financing need was solved and he received a higher commission as the loan amount increased from the original request. The interest rate was 8.99%, LTV was 65%, and the loan term was 12 months.