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Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.
California Fix & Flip Loan Stats
According to private lending data provider, Analytics Logics, the average interest rate for fix & flip loans in California is 10.49%. The average loan amount is $765,180. These stats are the average of all the loans which were funded between April 1, 2023 and September 15, 2023 by the many private lenders who use Liquid Logics’ loan origination software to manage their lending operations.
Fix & flip loans include the purchase of the property and the renovation budget, with the loan-to-after-repair value typically being no more than 70%.
Completed Fix & Flip Loans in Los Angeles
Fix & Flip Loan for Luxury Home in Los Angeles, California
Center Street Lending, a direct private lending firm, funded a $3,900,000 fix and flip loan for a highly experienced investor in Los Angeles, California. The purchase price was $4,950,000 so our 1st mortgage was a 66% loan-to-value. The loan term was set at 15 months. The property is a single-family residence and was built in 1951. The investor plans to do heavy rehab on the 39,000-square-foot property. This SFR fix and flip loan was funded in November 2021.
Fix and Flip Loan for SFR with ADU Addition in Los Angeles, California
In April 2021, TaliMar Financial funded a $616,000 Fix and Flip loan for a single-family home in Los Angeles, CA. The Borrower will complete a cosmetic update of the property before listing it for sale. The biggest hurdle in this transaction was the addition of an Accessory Dwelling Unit (ADU). The addition of an ADU has become a very popular option for real estate investors that are doing fix and flips and fix and holds. An ADU offers future buyers of the property to house extended family or rent for cash flow. Because ADUs are relatively new to the LA market and the lack of home sales that include ADU’s, verifying future value can be difficult. However, we worked with the Borrower and their listing agent to obtain a finished value by using a mix of recent sales and potential rents for the unit. Our hard money loan funded a large portion of the purchase, plus 100% of the renovation costs. The renovation funds will be disbursed to the Borrower over the course of the rehab in five predetermined draws based upon progress.
Fix and Flip Loan for Vermont Square SFR in Los Angeles, California
TaliMar Financial funded a $647,500 1st lien position fix and flip loan for a single-family home in the Vermont Square neighborhood of Los Angeles, CA. The property investor will complete a cosmetic update of the property and then re-list it for sale. We assisted with purchasing this investment property by first issuing a Proof of Funds letter. The POF Letter was included in their offer, and after a call with the listing agent, the seller accepted the offer. We closed 5 days later. No appraisal was required. The loan was structured to include funds for the purchase and 100% of the renovation costs. The renovation funds will be disbursed to the Borrower in five pre-determined draws. After the renovations are completed, the value is expected to be around $925,000. The loan term is 12 months. This SFR fix and flip loan was funded in January 2021.