First Capital Trust Deeds secured a 103% LTV hard money loan securing an existing fix and flip property to complete the acquisition of a vacant lot.
The experienced real estate investor leveraged the equity in a free and clear fix and flip property to do a 103% LTV hard money loan for the acquisition of this diamond in the rough property in Sacramento to eventually build a luxury spec home.
In order to do the zero down payment loan (103% LTV included the closing costs), the borrower pledged as additional collateral a fix and flip property that was owned free and clear, taking this loan from a 103% Loan-To-Value (LTV) purchase to a 70% LTV cross-collateralized loan.
First Capital Trust Deeds has helped other experienced real estate investors in California acquire properties with zero down payment loans. Zero down financing can be an excellent way to structure a loan for an investor who has real estate assets with significant equity who also needed to preserve capital in order to renovate the home. Or in the case of this property, to obtain permits to tear down the existing dwelling and start the construction process on the new luxury home.
103% LTV Hard Money Loan Terms:
- $335,000 Loan Amount (103% LTV of Purchase | 70% LTV of Both Properties)
- 12-Month Term
- No prepayment