Mortgage Vintage, Inc. (MVI) is a direct hard money lender that originates and funds business purpose loans for real estate investors and business owners. Many of our loans business purpose cash-out loans to Rehab a property that a real estate investor already has in his/her portfolio. We do these loans in both the 1st and 2nd position depending on the loan scenario. Below is a recent successful Rehab project that may be of interest to you.
The Subject:
- Address: Orinda, CA 92268
- Type: Single Family Residence
- Layout: 3 BR/3 BA
- Square Feet: 1,687
- Condition: Poor, in need of remodel
The Scenario:
- Subject was a SFR in poor condition but with great upside
- Borrower was competing against other investor flippers to acquire the property
- Borrower was a previous successful Mortgage Vintage borrower and contractor
The Solution:
- The borrower contacted Mortgage Vintage, Inc. about the opportunity
- MVI immediately saw that the fix and flip opportunity has a great deal of upside
- The borrower and MVI were able to show a successful record of quick funding to the Realtor to get the home in escrow
- MVI provided a new 1st TD based on 66% LTV on the ARV and 82% LTV on the purchase price
- The new loan funded in 8 business days allowing the borrower to start the rehab process sooner than expected
- Borrower received all cash offer for $1.305M at the conclusion of the rehab
The Numbers:
- Purchase Price: $800,000 or $474/SF
- BPO Value: $870,000 or $516/SF
- Loan Amount: $656,250
- Lender Rate: 9.50%
- Rehabbed Property Sold for: $1.305M
- Borrower Profit: $381,000