Even though our borrower client didn’t have an extensive track record of buying and selling houses, the fix and flip hard money loan in Santa Ana was a pretty low-risk trust deed investment at 76% loan-to-value (LTV) against the $335,000 purchase price. Or, another way of putting it is that it was a 55% after repair value hard money loan (ARV) of $465,000.
Homes in Orange County in this price range move very fast so there was minimal downside to doing this loan for the borrower, who successfully re-sold the property eight months later. All in all, this one worked out for all the parties involved in the transaction.
55% After Repair Value Hard Money Loan Terms:
- $255,000 Loan Amount (76% LTV / 55% ARV)
- 11.00% Interest-Only
- 12-Month Term
- No Prepayment Penalty