Los Angeles, CA
Single Family Residence
TaliMar Financial is pleased to announce the funding of a $616,000 Fix and Flip loan secured on 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 on 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 ADU's are relatively new to the 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 fix and flip loan funded a large portion of the purchase and 100% of the renovation costs. The renovation funds will be disbursed to the borrower over the course of the construction in five predetermined draws based upon progress.