A Los Angeles real estate investor acquired and renovated this home in Covina using a hard money loan from Peer-To-Peer Trust Deeds.
Challenge: Not much of a challenge here. A repeat borrower who juggles several projects at a time only wanted to commit 20% down payment (including closing costs) to the acquisition of this fixer upper in Covina, which they estimated could be acquired, renovated, and resold within 3-4 months.
The buyer estimated correctly that it would only take 3-4 months to resell. In fact, the house resold in eight days short of the three month anniversary. That’s a great way to use a high-leverage hard money loan to fix and flip a property, improving the cash-on-cash return on investment.
Fix and Flip Hard Money Loan Terms:
- $300,000 Loan Amount (82% LTV)
- 12-Month Term
- No Prepayment Penalty