Redlands, California Funded Fix & Flip Loan
Property Type: Single Family Residence
Lien Position: 1st Trust Deed
Loan Amount: $290,000.00
Appraised Value: $450,000.00
Loan Rate: 10%
Loan Type: Fixed Rate – Interest Only
Occupancy: Vacant – Investment Fix & Flip
Term: “12” Months Interest Only
Redlands, California – Our Borrower purchased the Subject Property in Redlands, California in July of 2015 for $185,000.00. We arranged a 1st Trust Deed purchase loan for $150,000.00 at 10% interest only with a “12” month term.
We believe that the loan for $290,000.00 has many strong points. The LTV for the loan is 64%………based on the Appraised Market Value. The Borrower has a FICO score of 704. The property is located in both a strong rental and sales area. The Trust Deed Investment has a good rate of return with very little risk.
The plan of payback is to either sell or refinanced the Subject Property prior to the maturity of the loan in Redlands, California.
At the time our Borrower purchased the Subject Property it was badly fire damaged. Our Borrower didn’t need to finance the repair work, so following the closing of the loan our Borrower invested over $50,000.00 of his own funds to make the necessary repairs and improvements to the Subject Property in Redlands, California.
Since our Borrower purchased the Subject Property way under market value and was further able to make the repairs for far less than what a contractor would charge, he was able to make a very substantial profit when he sold the Subject Property in Redlands, California.
$150,000.00 1st Trust Deed Fix & Flip Loan at 10%. Our Borrower completed the project in 3 months and made a profit.