85% LTV California Fix and Flip Financing In Redlands

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85% LTV California Fix and Flip Financing In Redlands

First Capital Trust Deeds secured the fix and flip financing on this Redlands, California home acquired by an experienced real estate investor.

When a home needs a lot of work, house flippers prefer to maximize the leverage of their hard money purchase money financing in order to have more than enough cash on-hand. They use this money to make renovations to the home in order to maximize the re-sale value and return on investment (ROI).

This home, located on a nice street in Redlands, fit that bill. This property was a wreck inside and out, but was located on a highly desirable street. This location would bring a lot of potential buyers when the extensive renovations were completed.

The trust deed investor that made the loan, was comfortable going to 85% Loan-to-Value on the purchase price since the home would likely sell for at least $100,000 higher after repairs are finished. And the buyer/borrower had a great track record of successfully flipping houses in the area. This made for a win-win loan across the board for the borrower and the lender.

California Fix and Flip Financing Terms:

  • $113,000 Loan Amount (85% LTV)
  • 12.00% Interest-Only
  • $1,130/Month Payment
  • 12-Month Term
  • No Prepayment Penalty
Do you have a similar financing scenario?
Inquire about your financing options with FCTD.