Northern California real estate investor purchases property at foreclosure auction and recaptures cash outlay using 12-month fix and flip financing from First Capital Trust Deeds.
There was no real challenge on this transaction. The investor bought the property at foreclosure auction in cash and wanted to quickly access 75% of the “trapped equity” from this property to go back to the auction and buy another property. Since the investor would be putting the house back on the market quickly as this was a standard cosmetic fixer, the goal was to keep the upfront costs as low as possible, which we did at at 1 point origination plus approximately $800 in additional origination fees.
First Capital Trust Deeds secured an 75% LTV 12-Month hard money fix and flip loan for the experienced real estate investor.
The investor recaptured 75% of their cash locked up in the equity of the property and had cash on hand to acquire another property at auction, starting the cycle all over again of paying cash at the auction and refinancing to recapture the cash. It’s a beautiful thing when it works like this. And now, we can complete the cash recapture process in approximately 5-6 days by using a title company that speeds up the process for active investors.
Foreclosure Auction Cash Recapture Terms:
- $135,000 Loan Amount (80% LTV)
- 1 Point Origination Fee
- 12-Month Term
- No Prepayment Penalty