Southern California real estate investor acquires East Los Angeles fixer upper using fix and flip financing from First Capital Trust Deeds.
This home had some great bones but needed the right real estate investor to come in and unlock all that potential of this close-in Los Angeles home. As far as a big challenge, there wasn’t much of a challenge to securing this 70% loan-to-value (LTV) loan in Los Angeles for an experienced house flipper who consistently bought and sold a dozen houses per year for the past five years.
The buyer only needed 70% LTV to acquire this home as they had sufficient money on hand for the down payment, renovations, monthly debt servicing obligations, along with funds to renovate their other projects under construction.
The trust deed investor (lender) had done several loans to the borrower so it only required a 5-minute walk through by the lender in lieu of a full URAR appraisal report or broker price opinion (BPO). Because of the borrower liquidity, track record, and property potential, the lender had minimal risk in making this loan.
Fix and Flip Financing Terms:
- $161,000 Loan Amount (70% LTV)
- 12-Month Term
- No Prepayment Penalty