Private capital, in plain English.

A deed of trust secures a loan against real property. When more than one loan is recorded against the same property, they have an order of priority — usually by recording date. That order is the lien position, and it determines who gets paid first if the property is sold or foreclosed.

A 1st deed of trust is the senior loan: first in line to be repaid. A 2nd deed of trust (a junior lien) sits behind the first and is only repaid after the senior loan is satisfied. The more subordinate the position, the more risk the lender takes — which is why private capital evaluates a 2nd differently from a 1st.

Private capital evaluates a 1st on loan-to-value (LTV) and a 2nd on combined loan-to-value (CLTV), because the existing first loan still has to be repaid ahead of the new money. A common alternative to stacking a 2nd is a new 1st that pays off the existing first and delivers the requested proceeds in a single senior loan.

Loan-to-value (LTV) is the requested loan divided by the property value. Combined loan-to-value (CLTV) adds in any debt that stays ahead of or alongside the new loan:

• CLTV = (existing first loan + requested new loan) ÷ property value
• Equity remaining = property value − total debt after the new loan

For a 2nd position, CLTV is the primary metric — not the new-money LTV. Example: a $500K second behind a $3M first on a $6M property is only 8.3% on new money, but 58.3% on a combined basis. The combined figure is what a capital source actually underwrites, so it is what CADeed leads with.

Lower CLTV generally means a stronger, more placeable scenario and more equity cushion. As combined leverage climbs past the comfort range, terms tighten and the deal may need restructuring — a lower amount, more collateral, a new 1st instead of a 2nd, staged funding, or a stronger exit.

Whether a loan is for a business/investment purpose or a personal/consumer purpose changes which laws apply and which capital sources can participate. The distinction is about the use of the loan proceeds, not the type of property.

Business-purpose / investment-property loans — for example, financing a rental, a fix-and-flip, or a project held for income or resale — are generally more suitable for private capital and are subject to fewer consumer-protection requirements.

Consumer-purpose / owner-occupied financing — secured by a borrower's primary residence and used for personal, family, or household purposes — is compliance-sensitive. It triggers additional consumer-protection laws, must be reviewed by a licensed mortgage professional, and may not be available from all capital sources.

Because the answer drives both compliance and routing, the engine always asks which applies, and it flags owner-occupied scenarios for additional review.

Construction completion capital funds the remaining work on a project that has stalled or been declined by a bank — often mid-construction, when a borrower has already invested significant equity but cannot finish under the original financing.

Because the collateral is only partly built, these facilities are draw-based and tied closely to the remaining budget and inspections. A complete review needs the project stage and permit status, the remaining cost to complete, the amount already invested, the as-is value, the as-complete value, the contractor or general-contractor status, and a documented exit strategy.

When an existing first loan is in place, completion capital is often structured as a 2nd behind it (evaluated on CLTV) or as a new 1st that consolidates the debt. The right structure depends on the numbers and the exit.

Private capital is usually short-term, so how the loan gets repaid — the exit — is as important as the leverage. The common exits are a sale of the property, a refinance into longer-term financing, or a payoff at the end of the term from another source.

A credible, documented exit strengthens almost every scenario, especially higher-leverage ones. The timeline matters too: a fast, well-supported close is a feature of private capital, but the exit should be realistic for the property, the market, and the borrower.