Fix and Flip Loans in California
Real estate investors across California are turning vacant properties into profitable ventures through fix and flip projects. However, transforming a rundown house or a dated property requires significant upfront capital that many investors don’t have readily available. That’s where Westpark Loans becomes a valuable partner. Our fix and flip loans in California make it easy to secure financing for your next project.
Lenders typically require detailed renovation plans, contractor estimates, and professional property appraisals to determine the after-repair value. Our hard money fix and flip loans make it easy for real estate investors to buy properties, renovate them, and sell them quickly for profit. Unlike traditional mortgages that can take 30–60 days to close, our loans provide fast access to capital with terms tailored to your personal short-term investment strategies.
Fix and Flip Loan Features and Terms
| Feature | Fix and Flip Loans |
|---|---|
| Loan Type | Real estate-secured short-term loan |
| Lien Position | 1st Position |
| Loan Term | 6 months – 36 months |
| Interest Rates | Fixed and Adjustable Rates Available |
| Loan Amount | $100,000 – $5,000,000 |
| LTV | Up to 90% of purchase price, 100% of rehab costs, not to exceed 75% of ARV |
| Credit Score | 600 min |
| Occupancy | Investment properties only |
| Property Types Allowed | 1-4 unit residential, multifamily, commercial |
| Prepayment Penalty | Flexible |
| Closing Time | 10-15 days |
What is a Fix and Flip Loan?
Fix and Flip Loans are short-term loans designed to finance the purchase and renovation of properties. These loans provide the capital needed to buy a property, fund the necessary repairs and improvements, and sell the property for a profit within a short timeframe.
Fix and Flip Features and Benefits
Fast Approval and Funding: Fix and Flip Loans offer a quick approval process, often within days, ensuring you can secure funding swiftly.
Flexible Terms: These loans provide flexible terms, allowing borrowers to customize repayment schedules according to their needs.
High Loan-to-Value Ratios: Borrowers can benefit from high LTV ratios, ensuring substantial financing for property purchases and renovations.
Rehab Costs Included: We finance 100% of the rehab costs on all our Fix and Flip loans, ensuring you have the capital needed to transform properties efficiently and profitably.
Short-Term Financing: These loans are typically short-term, ranging from 6 months to 3 years, making them ideal for real estate investors and property flippers.
Who Would Benefit from a Fix and Flip Loan?
Real Estate Investors: Investors specializing in purchasing, renovating, and selling properties can use fix and flip loans to finance their projects. These loans facilitate quick acquisitions and renovations, enabling investors to maximize their returns on investment.
Small Business Owners: Business owners involved in real estate development or renovation can benefit from fix and flip loans. These loans provide the necessary funds to improve properties, increasing their value and profitability.
Self-Employed Borrowers: Self-employed individuals in the property renovation business can access necessary funds through fix and flip loans. This enables them to complete projects efficiently and turn a profit from their real estate ventures.
Fix and Flip Loan Example
Tarek and his wife, experienced Southern California real estate investors, wanted to purchase and renovate a single-family home in Los Angeles to resell at a profit. They approached Westpark Loans for a Fix and Flip Loan.
- Location: Los Angeles, California
- Purchase Price: $900,000
- Rehab Costs: $200,000
- After Repair Value (ARV): $1,500,000
- Loan Amount: $810,000 (90% of Purchase Price) + $200,000 (Rehab Costs) = $1,010,000 (not to exceed 75% of ARV)
- Loan Term: 12 months
- Down Payment Needed: $90,000 (10% of Purchase Price)
Cash on Cash Return:
- Total Investment: Down Payment ($90,000) + Rehab Costs ($200,000) = $290,000
- Profit: ARV ($1,500,000) – Total Costs ($900,000 + $200,000) – Loan Amount ($1,010,000) = $390,000
- Cash on Cash Return: Profit ($390,000) / Total Investment ($290,000) = 134%
Westpark Loans approved their Fix and Flip Loan in just 12 days, enabling them to quickly purchase, renovate, and sell the property. They earned an impressive cash profit of $390,000 and achieved a remarkable cash on cash return of 134%, all in less than 6 months!
Frequently Asked Questions
Fix and flip loans are used to purchase and renovate properties for quick resale.
Approval and funding for fix and flip loans can occur within a few days to two weeks
The typical loan term ranges from 6 to 18 months.
Yes, first-time investors can qualify for fix and flip loans.
LTV ratios can go up to 90% of the purchase price and 100% of renovation costs, not exceeding 75% of the ARV.
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