Deal Details
Private Loan Type
Purchase
Approx. Funding Date
04/20/2021
Property Type
Property City
Los Angeles
Property State
CA
Lien Type
1st Mortgage
Payment Type
Interest Only
Renovation Budget Funded
100%
Exit Strategy
Sale
Deal Summary
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.