First Capital Trust Deeds secured the financing for an East Bay real estate investor who used 82% Loan-to-Value (LTV) hard money financing to acquire this Alamo bank-owned property.
For a nearly $2,000,000 loan, 82% LTV was higher leverage than most lenders like to go on larger loans. Often times, 75% LTV is the cutoff on loans over $1,500,000, despite the deep discount that the buyer was getting on the purchase price.
In this case, the property was difficult to comp since there weren’t many like it in the area. However, based upon as-is value and replacement cost, the sale price was substantially discounted, which along with the buyer’s track record, gave the lender additional security to go up to 82% LTV.
Hard Money Fix and Flip Financing Terms:
- $1,950,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty