First Capital Trust Deeds closed a 90% LTV Bay Area fix and flip financing loan for an investor looking to do a quick cosmetic fix on an East Bay property.
Doing 90% Loan-to-Value (LTV) loans can happen when the buyer “sources the property right.” That’s real estate lingo for getting a discounted price on the home. Private money lenders look at purchase price, as-is value, and after-repair value (ARV) when deciding the loan amount and the Loan-to-Value (LTV). The lower the purchase price in relation to the as-is value, the higher the LTV we can go on the purchase money loan.
For busy house flippers who buy 10+ properties a year, higher LTV means less money spent on down payments and more money available for renovations and acquiring more properties (ie. leveraging). Some investors can handle juggling 10 properties at a time while others are better suited with 3-4 projects.
Fix and Flip Financing Terms:
- $165,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty