Laguna Beach, CA

This loan is a second deed of trust on a single-family residence in Laguna Beach, CA. Laguna Beach is a highly desirable coastal city in Orange County known for its scenic beaches, dramatic cliffs, vibrant arts community, and upscale residential neighborhoods. The city’s residential real estate market is among the most expensive and supply-constrained in Southern California, driven by limited buildable land, strong demand, and the significant premiums associated with ocean-view properties. The subject, located at 31292 Monterey Street, is a single-family residence with a permitted accessory dwelling unit (ADU) situated in the highly desirable Coast Royal neighborhood of South Laguna Beach. The property sits on a 5,600-square-foot street-to-street lot and benefits from elevated ocean, white-water, coastline, and hillside views. Originally built in 1960, the property contains approximately 1,749 square feet of living area, a detached two-car garage, and a 430-square-foot ADU. Recent renovations, including updated kitchen and bathroom improvements, have contributed to an estimated effective age of 20 years. The property was rated Q4/C3 by the appraiser, reflecting average-to-good quality construction and a well-maintained condition with no significant deferred maintenance or physical deficiencies. Based on comparable sales within the immediate Laguna Beach market, the appraisal concluded an as-is market value of $3,900,000 as of May 19, 2026. The Borrowers purchased the property in 2006 and currently occupy it as their primary residence, while also renting the home when they are out of town. The existing first mortgage is held by SPS with a principal balance of approximately $1.575 million, a 2.00% interest rate, and a maturity date of June 1, 2037. The purpose of the loan is to provide cash out for business working capital. On or before maturity, the Borrowers intend to refinance and pay off the loan. The Borrower is a trust with a husband and wife serving as trustees. The husband is an IT consultant, and the wife is an interior designer. Together, they operate a Laguna Beach-based interior design business specializing in full-service design, renovations, and project management. Financials reflect approximately $154,678 in deposits over the past three months, and the husband has a mid-FICO score of 663. The loan will have a maturity of 24 months.