This is another straight forward hard money fix and flip financing loan where an experienced investor put 30% down and paid for the rehab work out of pocket. On this loan, we could have gone to 80-85% LTV but the buyer was perfectly fine putting 30% down. The house re-sold exactly four months later for a very nice profit.
This was a great loan for the buyer/borrower, trust deed investor, and FCTD (the mortgage broker). The buyer was able to get the high-leverage, low-cost hard money financing needed to close on the sale after the seller’s bank finally approved the offer, after eight months of “extend and pretend” deliberations that money losing mortgage holders like to do on their mortgage assets.
The trust deed investor made a 70% LTV loan to an experienced house flipper who they had made loans to a few times in the past. All of the previous loans were paid on-time and paid in full when they liquidated their prior fix and flip properties.
As the mortgage broker, First Capital Trust Deeds, we were able to originate a relatively simple loan in Hawthorne, a city that we hadn’t originated a loan in yet.
Hawthorne Hard Money Fix and Flip Financing Terms:
- $225,000 Loan Amount (70% LTV)
- 12-Month Term
- No Prepayment Penalty