Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
10/13/2022
Property Type
Property City
Los Angeles
Property State
CA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$600,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Source of Borrower's Contribution
Cash
Location Type
Urban
Property Condition
Poor
Occupancy at Closing
Vacant
Building Square Footage
1,764
Lot Square Footage
4,194
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Deal Summary
S&L Capital, a Southern California lending firm, provided a $480,000 acquisition hard money loan to a repeat borrower implementing a fix and flip strategy on a single-family residence in Los Angeles, California. The purchase price was $600,000. The Borrower elected to go for an 80% loan-to-purchase price in 1st lien position, with no fund control, and contributed 20% cash. While most lenders seem to like to max out leverage and force a component of the rehab to be financed, S&L Capital Group offers its Borrower an option to not finance rehab. This loan structure has multiple benefits and allows the borrower to move through the renovation more efficiently without the headaches of utilizing a fund control for a small rehab. This rehab was estimated to be completed within 3 months. The subject property was in poor condition and is approximately 1,764 square feet on a 4,194 square-foot lot. The Borrower planned to rehab and then sell the property within the 12-month loan term. This was our 5th funded loan for this Borrower with a growing track record in the great Los Angeles area. This hard money loan was funded in October 2022.
Dealmakers
Corey Siegel
President