Los Feliz Single-Family Fix-and-Flip Loan

We recently took a $2.1 million 1st position hard money on a rehab project in Los Feliz, California.

The subject property was a 3,751 sq. ft. home situated on a 21,566 sq. ft. lot. 

The house has 4 bedrooms, 3.5 bathrooms, a studio apartment over the garage and a pool.

The property was purchased in 2018 for $2.3 million and the borrower made approximately $400,000 worth of upgrades and repairs in an attempt to fix and flip the property.

The borrower listed the property for $3.9 million but was unable to get any offers.  

The homeowner had a $2.6 million private money loan with another lender that was reaching its maturity date.

We required the borrower to inject $500,000 of additional funds into the property to increase his equity position.

The sale price of the property was recently reduced to $3.4 million.

Our estimation was the property would sell within the next 6 months for between $3.1 to $3.3 million. 

Our $2.1 million private money loan, puts the LTV at around 65%.

This loan was attractive to us because of the property’s great location, the new condition of the home and the borrower being a repeat client with a strong track record.