Everyone comes out a winner when local flipper/contractor takes advantage of new ADU zoning laws:

  • $269,500 1st Trust Deed
  • 70% LTV on $385k Purchase Price
  • 9.50% Lender Rate
  • 12-month – Fix & Flip Loan
  • $139k Borrower Profit
  • MVI funds loan in 6 business days

The Subject:

  • Address:  1925 Orange St., Santa Ana, CA
  • Type:  Single Family Residence
  • Layout:  4 BR/2 BA
  • Condition:  Poor, Dilapidated

The Scenario:

  • A dilapidated residence in poor condition
  • This property was in a well established community
  • New zoning changes allowed for major improvements

The Solution:

  • The experienced local flipper/contractor contacted Sandy at Mortgage Vintage, Inc.
  • MVI provided an 70% LTV 1st TD for the borrower to acquire the property plus add an Additional Dwelling Unit
  • Fast close was provided in 6 days so the flipper could compete to win this property
  • With MVI funds secured, the borrower went to work and transformed the property and added an ADU and increased the garage footprint
  • Fast Funding Based on Committed Terms
  • The remodeled property with multiple rental revenue opportunities (2 units) was subsequently purchased by a real estate investor seeking yield

The Numbers:

  • Purchase Price:  $385,000
  • Net Profit:  $139,000