Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
04/13/2021
Property Type
Property City
San Diego
Property State
CA
Payment Type
Interest Only
Source of Borrower's Contribution
Cash
Renovation Budget Funded
100%
Deal Summary
In April 2020, TaliMar Financial funded a $420,000 fix and flip loan for a single-family home in San Diego, CA. The Borrower, a full-time real estate investor, intends to complete a full interior and exterior renovation of the property before listing it for sale.
The biggest hurdle in this transaction was that our Borrower was purchasing the property with a Notice of Pending Administrative Action, also known as a “red tag,” recorded on the property. The notice required the existing owner to either remove an unpermitted addition or submit plans to have it approved by the City. Because the current owner was not in a position to correct the issue and our client had substantial experience getting additions approved, he purchased the property with the enforcement action lien.
Most Hard Money Lenders would not lend on a house with an existing enforcement action because of the additional risk that it may not be corrected. TaliMar Financial worked with the Borrower to understand the issue and was able to approve because of the Borrower’s prior experience with illegal additions.
We funded most of the purchase and 100% of the rehab budget which will be disbursed as the project progresses over the next 6 to 12 months.