An Orange County real estate investor acquired this fixer uppers using 85% LTV fix and flip financing loan in Garden Grove from First Capital Trust Deeds.
This 85% Loan-to-Value (LTV) acquisition in Garden Grove was another case of an experienced real estate investor using high-leverage, low-cost hard money fix and flip financing to buy a discounted property to flip for a big profit 6-8 months down the road. This epitomizes what our repeat borrowers do month in and month out when they source properties right (buying at a discount from as-is value) to fix and flip.
Hard money fix and flip trust deed investors are okay going to 85% LTV of purchase price as long as they believe that they’re loan position, or risk exposure, is at 75% of the as-is value. This is often an internal amount generated by the lender. In scenarios like this loan, 85% LTV made sense because the buyer did a great job negotiating the purchase price with the seller’s bank on the short sale.
With other fix and flip cases, like in the Bay Area, sometimes we’re capped at 75% LTV because 20-30 house flippers have bid up the purchase price by $50,000 or more. However in Orange County, there’s still plenty of deep discounts available on distressed properties like this one in Garden Grove.
85% LTV Fix and Flip Financing In Garden Grove Terms:
- $275,000 Loan Amount (85% LTV)
- 12.00% Interest-Only
- $2,750/Month Payment
- 12-Month Term
- No Prepayment Penalty