First Capital Trust Deeds provided the hard money financing for a “cash-only” listing in San Bernardino.
Well, it’s a property that is in such bad shape that it cannot be financed by Fannie Mae, Freddie Mac, FHA, or the VA home loan programs. These “cash-only” or “handyman special” homes, have often been stripped of kitchens, wiring, plumbing, decks (yes, we’ve seen missing decks), door handles, shower curtain rings, etc.
If the listing agents wanted to get more creative or detailed with their listing, they could have written, “Buyers Need To Come With Cash or Must Have Have A Fix and Flip Hard Money Loan Approval That Can Close In 5 Days!”
Hard money lenders will finance these homes for house flipper buyers. FCTD gets one of these houses every few months.
This paves the way for an experienced house flipper, like our client in San Bernardino, to buy the house on the cheap, renovate the home and bring it up to conventional lending standards in order to sell it to an end-user first-time buyer, who will most likely be taking out a government-backed loan to buy this house.
“Cash-Only” Loan Terms:
- $116,000 Loan Amount (75% LTV)
- 11.000% Interest-Only
- $1,063/Month Payment
- 12-Month Term
- No Prepayment Penalty