A Los Angeles real estate investor closed quickly using hard money fix and flip financing plus a second mortgage from Peer-To-Peer Trust Deeds of Walnut Creek, California.
Challenge: A real estate investor came to P2PTD needing a quick close using hard money fix and flip financing on a property in West Los Angeles. The first trust deed lender only wanted to do 75% LTV on the purchase while the buyer needed to be at 83% Loan-To-Value (LTV).
Solution: The hard money first trust deed was simple and very doable. P2PTD secured a small second trust deed for $24,000 to go behind the $229,000 hard money first, going up to the 83% Combined LTV (CLTV) that the buyer needed to be at to make the transaction work.
The buyer was able to close the hard money loans quickly and resold the property four months later for an $85,000 gain. That’s pretty good, eh? Both trust deed investors received four months of interest at 11.00% and 13.99%, respectively, which worked out well for each party.
Hard Money Terms:
- $229,000 Loan Amount (75% LTV)
- 12-Month Term
- No Prepayment Penalty