This was a pretty straight forward transaction where the experienced real estate investor was getting a great price on this distressed property in Palm Springs. The property would need some updating in order to maximize the resale price. Since the buyer expected to be able to get in quickly to make repairs and have the property back out on the market within two months, they selected the 1 point upfront + $855 @ 12.00% interest-only as opposed to the 2 points + $855 @ 11.00% on an 85 LTV hard money fix and flip financing program. Many repeat house flippers like going with the lower upfront costs and slightly higher rate because it helps their profit margin on properties they expect to be in and out of within a few short months.
85% LTV Hard Money Fix and Flip Financing Terms:
- $165,750 Loan Amount (85% LTV)
- 12-Month Term
- No Prepayment Penalty