Santa Ana, California Funded Fix & Flip Loan
Property Type: Single Family Dwelling
Lien Position: 1st Trust Deed
Loan Amount: $133,000.00
Appraised Value: $220,000.00
Loan Rate: 10.99%
Loan Type: Investment Purpose
Occupancy: Non-Owner Occupancy-Vacant
Term: “12” Months Interest Only
Santa Ana, California Our returning Borrower wanted to purchase a Fix & Flip property in Santa Ana, California, and wanted our company to arrange the purchase financing. Our Borrower buys, Fixes and Flips properties and had always made a good profit when he sold the properties. He was purchasing the Subject Property for $190,000.00, where our Appraisal Report came in at $220,000.00, so he was buying a little under market value. Our Borrower intended to put down $57,000.00 in addition to funds to cover all closing costs and funds to cover the necessary repair and improvements.
The LTV for the loan was 70% relative to the Subject Property’s Purchase Price, but 60% LTV relative to the $220,000.00 Appraisal Report value. Our Borrower was intending to invest approximately $20,000.00 to $30,000.00 in improvements and upgrades and was further looking to sell the Subject Property for approximately $290,000.00 or more following the completion of all work. The property improvements and upgrades that our borrower planned to make would further increase the Subject Property’s value and thus lower the LTV of the proposed loan for our Investor.
We arranged a new $133,000.00 1st Trust Deed Fix & Flip loan at 10.99% with a “12” month term. In less than “4” months from buying the property our Borrower was able to sell for a substantial profit. Santa Ana, California