1st flip with HML - 70% ARV in CA?

Question

Hello everyone! My husband and I are potentially looking to purchase and flip a great property in LA through a personal connection. The area has great comps and we would buy well below retail value before the rehab.

Do you know of any HMLs in CA who will finance 70% ARV for new investors? If so, what would investors need to provide them to fund the project?

This is going to be our first deal - we would welcome advice from more experienced investors here at BP.  Thank you in advance!

Renee Ren · Answer

HM lender usually funds 80% of purchase price plus all rehab cost and 65% of ARV. It may go up to 70% of ARV depends on the spread you have. Some lender will go visit the property before they release the fund. You need to file an application to them. Some lender will ask for your resume especially how many flips you've done in the past 6 months or a year. If you are new, they may charge you higher interest rate and points. If you are working with an experienced partner, you may bring him/her up to show you have the experience.

We are currently working with Trillion Capital. We are getting 10.5% interest rate plus 2.5 points but it may vary depends on your deal. Most HM lenders charge 10-11% interest rate plus 2-3 points upfront. They are eager to work with investors. You'll find their contact details online. Phone number can not be posted here.

Rick B. · Answer

@Anneli Villarin, hello!  I'm curious how your deal went, also any feedback on your experience with the HML you used???

Anneli Villarin · Answer

Thank you for the reply @Antonio Gonzales! Will PM you so that I can get your contact information :) We would love to learn more about your program!

Anneli Villarin · Answer

Thanks for the referrals, @Manolo D. and @Joe Homs :) I appreciate you helping point us in the right direction! We will follow up on your recommendations!

Antonio Gonzales · Answer

Thanks @Manolo D.! @Anneli Villarin, I would be happy to provide you with our general terms and options for you.

Joe Homs · Answer

@Anneli Villarin  I just me with someone from your neck of the woods the other day. Small world. If you need some advise you can call or email. Also for HML you can check out @Steve Snyder who loans up to 100% for experienced flippers.

Anneli Villarin · Answer

Thanks for the reply @Jo-Ann Lapin! What documents would investors need to gather together before we come to you for a funding proposal? We want to make sure we're lining all our ducks in a row!

Jo-Ann Lapin · Answer

Perhaps we can take a look. Here locally in tustin