First Capital Trust Deeds secured an 80% LTV hard money fix & flip financing loan for the buyers of this Whittier fixer upper. This was a straight forward hard money fix and flip financing scenario for experienced house flippers who did a great job sourcing this duplex in Whittier, and negotiating a deeply discounted price that left significant room for a big profit on the resale.
Our clients came in with 20% down payment plus closing costs. The trust deed investor who funded the loan was comfortable with the 20% equity cushion and estimated the after repaired value (ARV) of $500,000-$550,000. This meant that the loan was an 80% Loan-to-Value (LTV) purchase money and 50% ARV loan, which provided significant protective equity in the event that the deal went south, which was highly unlikely.
In fact, this loan was in force for nearly eight months, yielding the trust deed investor an attractive 11% yield. Not to be outdone, the borrower did even better, re-selling the property for nearly $200,000 more than they originally paid. Needless to say, everybody involved in this transaction did really well.
80% LTV Fix and Flip Financing Terms:
- $280,000 Loan Amount (80% LTV)
- 11.00% Interest-Only
- $2,567/Month Payment
- 12-Month Term
- No Prepayment Penalty