Recently Funded Fix And Flip Loan In Costa Mesa, CA

Loan Scenario:

This recently funded hard money loan centers on a fix-and-flip project for a single-family detached property located in Costa Mesa, California. The property was purchased for $1,759,000 with a comprehensive rehab budget of $652,500 aimed at converting the existing rear garage into an accessory dwelling and expanding the front building to increase square footage. The loan amount secured for this project is $2,235,600, resulting in a Loan-to-Cost (LTC) ratio of 93% and a Loan-to-After Repair Value (LTARV) of 70%.

Upon completion, the after-repair value of the property is projected at $3,200,000, providing a substantial equity uplift. The scope of work includes a wide range of improvements designed to modernize and enhance the property’s functionality and aesthetic appeal. Key renovations involve significant structural changes such as excavation, framing, and concrete work, along with the installation of new plumbing, electrical systems, and HVAC.

Additional updates will include new flooring, interior and exterior painting, and the installation of modern appliances to attract prospective buyers. The landscaping will also be revamped, featuring the addition of outdoor living spaces like a fire pit and patio, which are increasingly sought after in today’s market.

The experienced investor, a repeat borrower, will utilize the financing to cover all hard costs associated with these enhancements, ensuring a thorough transformation of the property that aligns with current market demands. By implementing these strategic renovations, the project aims to maximize returns while significantly enhancing the property’s overall value and appeal in the competitive Costa Mesa real estate market.