fix and flip lender

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