85% LTV Fix And Flip Financing To Renovate A Ranch In Upland

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85% LTV Fix And Flip Financing To Renovate A Ranch In Upland

Southern California real estate investors acquired this Upland home using 85% LTV fix and flip financing from Peer-To-Peer Trust Deeds of Walnut Creek, California.

Challenge:  The buyers wanted to use as much leverage as possible by taking out an 85% LTV fix and flip financing loan without having to look for a second mortgage, gap funding, or an equity investor.  All three of the aforementioned options can be pretty expensive.  From the looks of the interior photos, the previous owners had updated some rooms in the house while leaving others looking like Jack Horner’s house in Boogie Nights with the 1970’s decor.  The renovation and remodeling costs wouldn’t be too much compared to a home where every room in the house needed to be redone.       

Solution:  Since the buyers had an extensive track record and were buying the house right (ie. getting a 10-15% discount off AS-IS Value), the lender felt comfortable going to 85% of the purchase price on the fix and flip financing loan.      

The borrowers were happy with 85% Loan-To-Value.  This would leave plenty of cash on-hand to remodel the home and put it back on the market for top dollar.  The trust deed investor used the discounted purchase price to as a factor in going up to 85% LTV, figuring that the buyers had at least an additional 10-15% equity in the home’s AS-IS value.   Most of the time, this lender likes to be at 75% of AS-IS value and at most 60% of After Repaired Value (ARV).  This property fell in line with that underwriting criteria.  

85% LTV Fix and Flip Financing Terms:

  • $590,750     Loan Amount (85% LTV)
  • 12-Month Term
  • No Prepayment Penalty


For fix and flip financing scenarios in California, Oregon, or Washington, please contact Brett Everett or Ted Spradlin.

Do you have a similar financing scenario?
Inquire about your financing options with FCTD.