Real estate investor and long-time general contractor was seeking a business purpose purchase loan to Fix & Flip this SFR in Los Angeles. The loan of choice for this scenario was the “MVI 80/80” fix & flip loan where we provide 80% of the purchase price and 80% of the rehab cost all on one loan.
The subject property was a traditional style SFR sitting on a 4,805 SF lot. The home has 5 total rooms with 2 BR and 1.5 BA and is 1,214 SF. Upon completion of the remodel, the property will feature all new kitchen, windows, doors, flooring, cabinets, lighting and fixtures, as well as, a detached 2-car garage with an ADU unit above the garage. The ADU will feature a living room, half bathroom and efficiency style kitchenette. The subject is centrally located near schools, shopping, parks, restaurants and medical facilities.
This loan was 80% LTV on the combined purchase price and rehab budget. Appraised ARV was $753k for an ARV LTV of 49.96%. Loan structure featured 6 months of guaranteed interest and an 9.00% annualized return.