Each month, First Capital Trust Deeds receives several requests for high-leverage private money loans. Some requests we can accommodate while others won’t work. This high-leverage request for a 90% LTV Southern California private money fix and flip loan in the Palm Springs area was one request that worked.
For an 85-90% LTV request to work, the buyer/borrower needs to have secured a purchase price at a significant discount off the as-is value to where the loan would be at 75-80% of as-is value. This would equate to 85-90% of purchase price.
That’s where this loan scenario came in at. Thus it worked for the buyer, the lender, and for us as the broker.
Fix and Flip Financing Terms:
- $157,500 Loan Amount
- 12-Month Term
- No Prepayment Penalty