First Capital Trust Deeds secured a 79% LTV purchase plus 100% LTV rehab loan in San Francisco for a Bay Area real estate investor doing an extensive renovation to a home built around the turn of the century.
Since the borrower had successfully flipped a few dozen homes and had previously borrowed from the California private money investment fund, the underwriting process only took two days. The home was purchased below as-is value, which made 79% LTV on the purchase work for the lender. Having a renovation budget of $225,000 would most likely lead to an after repair value (ARV) within the normal 12-15 months that San Francisco flips usually take. Assuming market conditions stayed relatively similar give or take a 5% variance, of around $1,800,000.
Purchase Plus Rehab Terms:
- $1,015,000 Loan Amount (Includes Purchase + Rehab Money)
- 12-Month Term
- No Prepayment Penalty