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Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.
Karpe Real Estate Center
Private Lending for Central California Real Estate - Bakersfield, Fresno, Central Valley, Sacramento | Est. 1926
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%.
Funded Fix & Flip Loans in California
TaliMar Financial, a direct hard money lender, funded a $734,000 Fix and Flip loan for a single-family home rehab project in North Hollywood, CA. Our Client will complete a cosmetic update of the property before relisting it for sale. The biggest hurdle in this transaction was the time to close. The Seller accepted our Borrower’s offer assuming a 5-day close with no appraisal contingency. Once notified, our underwriting team got to work quickly completing the review process. Because the Borrower was quick to submit their diligence material, we approved the loan in 24 hours and met their short closing time frame. The Borrower contributed a good amount of cash for the purchase, and we funded 100% of the renovation budget. The renovation funds will be disbursed over the course of the project which should take around 6 to 9 months to complete. This SFR fix & flip loan was funded in June 2021.
TaliMar Financial, a direct lender, fund a $445,900 1st lien position hard money loan secured by a single-family home in La Mesa, CA. The Borrower intends to update the existing home and convert the detached garage into an Accessory Dwelling Unit (ADU). They will then decide to either refinance our hard money loan with conventional financing or sell the property. Our Hard Money Accessory Dwelling Unit loan funded a portion of the purchase and 100% of the construction costs. The construction funds will be disbursed to the Borrower over the course of the renovation. Building an ADU has become a very popular option for people who are buying or currently own residential investment properties. Many cities in California are suffering from massive housing shortages and as a result, they have begun to loosen their requirements on ADUs. The most difficult part of funding ADUs is the lack of comparable sales in the market. In many cases, we utilize an income approach on these projects and compare future income to debt service. This approach is very different from the typical comparable sales analysis which relies heavily on price per square foot and property features/conditions.
Rehab Purchase Loan for Fix and Flip Project in Glendale, California
Alta Capital Group, a hard money lender, funded an $825,000 1st and 2nd lien position fix and flip loan for a single-family residence in Glendale, CA. The Borrower reached out to Alta just 2 days prior to their deposit going non-refundable and we were able to move quickly to underwrite the investment and give the Borrower confidence that they could trust Alta to perform when it mattered most. Alta financed this deal through its unique Rehab Loan Program at a rate of 8.99% on a 12-month first trust deed at 80% of the purchase price. Alta was also able to provide a 2nd trust deed of $85,000 to raise the initial CLTV to 90% and allow the Borrower to keep more of their working capital in the bank. As part of that program, Alta also provided the Borrower with 100% of their $150,000 rehab budget. This SFR fix and flip loan was funded in January 2020.