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Los Angeles, CA – I
A commercial broker and partner of Lima One, had a client that was looking to purchase and rehab a 4,900 square foot home in Beverly Hills – an upscale neighborhood of Los Angeles, California. The home, which had been occupied by a single owner for 50 years, needed cosmetic updates to capitalize on the opportunity to resell a luxury fix and flip property in a market experiencing all-time-high home prices.
By the Numbers:
$4,940,000
Loan Amount
$5,000,000
Property Cost
$1,530,000
Rehab Budget
$8,000,000
After-Repair Value
The Opportunity
A commercial broker and partner of Lima One, had a client that was looking to purchase and rehab a 4,900 square foot home in Beverly Hills – an upscale neighborhood of Los Angeles, California. The home, which had been occupied by a single owner for 50 years, needed cosmetic updates to capitalize on the opportunity to resell a luxury fix and flip property in a market experiencing all-time-high home prices.
The Solution
The broker has historically worked with Lima One to finance multifamily and rental deals for their investor clients, but was able to offer financing for this particular flip deal with Lima One, due to our comprehensive suite of loan programs - designed to scale any investment strategy.
On this deal, Lima One financed the purchase of the home for $5 million plus a $1.5 million rehab budget for updates and repairs at a 75% loan-to-cost leverage. The 19-month, interest-only loan for $4.94M will let the investor add significant equity to the property, bringing the expected after-repair value to $8 million.
This opportunity was able to generate a $1.5 million profit upon completion of the rehab, and the investor engaged Lima One to close an additional two fix and flip deals in Southern California.
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