Case Study85% LTV Fix & Flip Financing in Central Oregon
Loan Amount: $445,000
Loan-To-Value: 85% LTV
Term: 12 Months
Situation & Challenge
An experienced investor was in contract to acquire two fix and flip projects and wanted to the highest leverage at the lowest possible pricing to maximize return on investment across both properties.
This home was in a great neighborhood and only needed cosmetic upgrades to maximize potential, so going to 85% LTV on the loan was a reasonable request. We always try pushing the envelope on leverage for repeat borrowers, with an ask of 90% LTV. Smaller markets like Bend, Oregon, just don’t get the extra 5% LTV bump that a similar property in a larger market like Portland would get.
Solution & Result
Although we couldn’t get 90%, the borrower agreed that 85% LTV on the purchase was still pretty good.
The new fix and flip loan carried a sub-9.00% interest rate, which made the acquisition of both projects more likely to generate expected ROI.