Our Borrower was purchasing the Subject Property for $249,000.00 in Bell, California, which was under the then current market value. He was putting in $87,000.00 as a down payment together with funds for all closing costs.
The LTV for the loan was 57% relative to the Subject Property’s Appraised Value and 65% LTV relative to the purchase price. The intended repairs and improvements that our Borrower planned to make to the Subject Property would further increase its value to approximately $360,000.00.
Our Borrower intended to invest approximately $25,000.00 in improvements and upgrades, and further was looking to sell the Subject Property for approximately $360,000.00 within a few months Bell, California.
Since our Borrower had a great rehab track work and a long history with our company and our Investors, we were able to quickly fund a $162,000.00 1st Trust Deed Fix & Flip Loan at 10.99 with a “12” month term for our Borrower.