A Los Angeles-based real estate investor used 80% LTV hard money fix and flip financing in West Covina through First Capital Trust Deeds to make a $173,000 gain in just 49 days.
FCTD arranged the 80% loan-to-value (LTV) loan through a Los Angeles-based investment fund specializing in short-term fix and flip financing. The fund manager noticed that the buyer was buying the property well under current market value and increased the LTV from the standard 75% LTV up to 80% LTV because of the all the “built-in equity.”
After acquisition, the real estate investor quickly remodeled the home from top to bottom with a brand new roof, interior and exterior paint, hardwood floors, new carpet, brand new kitchen with stainless steel appliances, crown molding, and updated bathrooms.
Fix and Flip Financing Terms:
- $282,000 Purchase Price
- $226,000 Loan Amount (80% LTV)
- 12-Month Term
- No Prepayment Penalty