First Capital Trust Deeds secured the Bay Area 85% purchase 100% rehab fix and flip financing for an investor seeking the highest leverage possible to renovate this home in the East Bay.
Since the buyer had successfully bought and sold many properties over the past few years, plus negotiated a below as-is value purchase price on this property. The lender was able to provide 85% Loan-to-Value (LTV) on the acquisition and 100% of the rehab funds.
This pricing arrangement made it possible for the investor to close on the property while completing a few other projects in the area. We see this quite a bit where our clients have many projects going on at one time. Some are in the middle of construction, while others are in escrow scheduled to close soon, which will free up several hundred thousand dollars of cash. In the meantime, discounted properties like this one become available and they need high-leverage financing in order to close quickly on what will become the next project in their pipeline.
Purchase Plus Rehab Financing Terms:
- $747,000 Purchase Money Loan (85% LTV)
- $200,000 Rehab Financing (100% LTV)
- 12-Month Term
- No Prepayment Penalty