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