A first-time house flipper acquired an Agoura Hills condo with 80% LTV fix and flip financing from First Capital Trust Deeds.
Since the buyer had never gone through the process of flipping a home before, they relied on the expertise of their real estate agent. The realtor did a great job sourcing the property and walking the new investor through the process, which turned out to be a pretty nice score for their first time flipping a property.
Our trust deed investor (lender) had loaned money across the street from this property and was very familiar with the area. Going to 80% LTV on the purchase to a first-time house flipper made plenty of sense since they estimated that the purchase price was discounted by about 15%. The unit didn’t need much work so there wasn’t much risk involved with this loan in the eyes of the trust deed investor. FCTD and the lender estimated this property’s after repaired value (ARV) at close to $375,000 which gave the $224,000 loan amount a 60% ARV ratio, which is pretty safe from a lending perspective.
80% LTV Fix and Flip Financing Terms:
- $224,000 Loan Amount (80% LTV and 60% ARV)
- 11.00% Interest-Only
- $2,053/Month Payment
- 12-Month Term
- No Prepayment Penalty