Fix and Flip Loan for SFR with ADU Addition in Los Angeles, California

Funded by TaliMar Financial

$616,000

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

04/20/2021

Property Type
Single Family Residence
Property City

Los Angeles

Property State

CA

Lien Type

1st Mortgage

Payment Type

Interest Only

Renovation Budget Funded

100%

Exit Strategy

Sale

Deal Highlights

Our hard money loan funded a large portion of the purchase, plus 100% of the renovation costs.

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.

Funded By

TaliMar Financial

California's Trusted Hard Money Lender