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FixNFlip – Rancho Mirage, CA

A broker had a client who found a home in Rancho Mirage, California, just outside Palm Springs, as a potential fix and flip project. The property was in good shape and would be attractive on the market with some cosmetic updates.

By the Numbers:

$742,500

Loan Amount

$655,000

Purchase Cost

$153,000

Rehab Budget:

92%

Loan to Cost Leverage

$992,000

Appraised After-Repair Value

75%

Loan to After-Repair Value Leverage

The Opportunity

The broker came to Lima One Capital looking for financing options at high leverage.

The Solution

Lima One provided a fix and flip loan worth $742,500. This covered 100% of the $153,000 rehab budget plus 90% of the $655,000 purchase price. This 92% blended loan-to-cost leverage minimized the cash the investor had to bring to the closing table.

Now the flipper can proceed on the flip with confidence, knowing that rehab funds will be available quickly thanks to Lima One’s in-house draw process. Lima One’s combination of high-leverage financing and premier service throughout the life of the loan will help the flipper succeed on this flip and capture profit so he can continue scaling his flipping business.