Fix and Flip Loan for Red-Tagged SFR in San Diego, California

Funded by TaliMar Financial

$420,000

Deal Details

Private Loan Type

Residential Fix and Flip

Approx. Funding Date

04/13/2021

Property Type
Single Family Residence
Property City

San Diego

Property State

CA

Payment Type

Interest Only

Source of Borrower's Contribution

Cash

Renovation Budget Funded

100%

Deal Highlights

Borrower was purchasing property w/ a Notice of Pending Administrative Action AKA. “red tag”.

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.

Funded By

TaliMar Financial

California's Trusted Hard Money Lender