An East Bay investor used an 85% LTV fix and flip financing loan in Richmond from First Capital Trust Deeds to acquire a small fixer upper in need of a major overhaul.
Since the as-is value was about 10-15% higher than the purchase price, the private money fund that loaned the money took the loan up to 85% Loan-to-Value. Moreover, the after repair value (ARV) reflected a resale price nearly double what the investor acquired the property, which meant that this project had a lot of upside and built-in protective equity.
Fix and Flip Financing Terms:
- $110,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty