Case Study

REO Purchased From Auction.com Using Fix & Flip Financing

Loan Details

Loan Amount:  $300,000

Loan-To-Value:  80% LTV

Rate:  9.00%

Term:  12-Month

Situation & Challenge

An active real estate investor called looking to lower their borrowing costs from 3-4 Points and 11.00% at a Loan-To-Value (LTV) of 75%. The investor needed lower cost of funds with higher LTV in order to increase the number of fix and flip acquisitions.

Solution & Result

The investor needed lower cost of funds with higher LTV in order to increase the number of fix and flip acquisitions. 

First Capital Trust Deeds secured hard money fix and flip financing at 2 Points, 9.00% Rate, and 80% LTV, lowering borrowing costs and increasing the leverage.

Do you have a similar financing scenario?
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