A real estate investor acquired this North Hollywood 4-unit building using 84% LTV hard money fix and flip financing from First Capital Trust Deeds.
When real estate investors buy a property at a low enough price, they can often obtain a maximum leverage like an 84% LTV hard money fix and flip financing loan this investor obtained from a trust deed investor that FCTD frequently works with. Our buyer/borrower client did a great job negotiating a below market purchase price that had about $100-150K of built-in equity off the present as-is value. When buyers/borrowers pick properties up at steep discounts like this, trust deed investors are willing to increase the loan-to-value of the purchase price into the 80-90% LTV range.
This loan, at 84% LTV, was a no-brainer for the trust deed investor who walked the property with the buyer in just five minutes and had loan docs ready the following morning. When the deal is right on both the purchase and on the financing side, hard money loans go very fast, which makes life very easy for borrower, lender, broker, and real estate agents representing both buyer and seller.
Fix and Flip Financing Terms:
- $600,000 Loan Amount (84% LTV)
- 11.00% Interest-Only
- 12-Month Term
- No Prepayment Penalty