Our Borrower was purchasing the Subject Property for $147,000.00 in Jurupa Valley, California. He was intending on putting in $37,000.00 as a down payment, in addition to depositing the necessary funds into Escrow to cover all closing costs.
The LTV for the loan was 67% relative to the Subject Property’s Appraised Value, and was 75% LTV relative to the purchase price. Our Borrower estimated that the required repairs and improvements would costs him approximately $20,000.00, which he was prepared to pay for from his own funds.
The property improvements and upgrades that our Borrower planned to make to the Subject Property. Would further increase its value to approximately $230,000.00, and thus lower the LTV of the proposed loan for our company’s Investor down to 48% LTV.
Our Borrower had a long track record of repairing and later selling Fix & Flip properties. “3” year track record with our company and our Investors, so we were able to quickly fund a $110,000.00 1st Trust Deed Loan at 10.99 with a “12” month term for our Borrower.