A Los Angeles real estate investor acquired this property using 70 LTV fix and flip financing from First Capital Trust Deeds.
This was a pretty straight forward acquisition of a short sale listing like so many of the purchase money hard money loans FCTD originates for our house flipper clients. The previous owners had purchased during the heart of the first housing bubble and needed to sell for nearly $150,000 less than the original purchase price.
Our client capitalized on the opportunity to purchase the property, waiting out the short sale approval escrow period which took just over six months. But the wait was worth it as the investor scooped up the property at a discount and quickly re-sold the home three months later for a $90,000 gain.
Cosmetic fixers like this often result in quick turnaround time on the resale where our clients make a nice profit. The $90,000 in 90 days in this price point is well above-average for profits and great to see when we see projects like this succeed.
70 LTV Fix And Flip Financing Terms:
- $263,000 Loan Amount (70% LTV)
- 11.00% Interest-Only
- 12-Month Term
- No Prepayment Penalty