If you’re an experienced house flipper, you can finish renovations in less than 30 days, and get lucky enough to have a cash buyer show up within 35 days of your purchase date offering close to full price for your property, you know that you’ve done really well. This happened to our private money fix and flip financing client on this project in Solano County, who wound up selling the property in 45 days and before their first hard money loan payment was due.
This doesn’t happen often, but it’s a great example of what’s possible when an experienced real estate investor gets the right project and knocks out the work as quickly as possible. Sometimes the stars align and the right people show up in the right place at the right time. We think this was the case here.
In terms of the loan, the borrower expected they’d be in and out of the property within 90-120 days. So they chose 1% origination rather than the 2% origination pricing option. Going with a 12.00% rate over the 9.75% rate. Luckily, they didn’t need to make the first $1,480 monthly payment since that was paid off in the all-cash transaction by the end-user buyer.
Private Money Fix and Flip Financing Terms:
- $148,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty