© copyright 2023, All California Lending. All right reserved
Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
Experienced rehab investors in California are at a premium and we have the hard money loan programs to reward the most experienced investors with lower rates and costs. While our hard money programs have been a ‘one size fits all’ type of pricing model for many years, an influx of investor money has allowed us to expand our offering to reward investors who have been successful and who have experience.
For the most highly experienced investors, we are able to offer single digit rates on our fix and flip lending programs. These programs are tied to the loan to value as well as the experience level of the guarantor. They will cap out at 80% loan to value max, using the current value for the initial funding and the as complete or ARV value for the rehab funding. For investors that have cash to work with, structuring these rehab loans properly can save a substantial amount of money.
In addition to better and lower rates for experienced fix and flip investors these programs also offer lower fees. Depending on the project, fees for these hard money experience based rehab loans in California typically fall out between 2.5 – 3.5 points. There are no minimum credit score requirements involved either. We verify your experience, verify your project and price based on those two factors.
For highly experienced investors able to put 30% down on the purchase price we can typically structure a rehab loan that will fund the remaining 70% of the purchase price plus 100% of the rehab costs. For those with the highest levels of experience, these loans are typically going to come with a rate below the 9% level. Even for those with only an average level of experience we can often offer this structure at slightly higher rates that are still in the single digits.
For those looking for more leverage, we can go as high as 80% on our loan to value ratios, although the higher loan to value funding levels do come with some increase to rate. By the same token, lower loan to value ratios can allow pricing to come in much lower, in some situations approaching the 7% level. For highly experienced investors with cash to work with who are looking to leverage these programs can make a lot of sense – and save a lot of money compared to the more traditional fix and flip lending options.
For more information about our experience based California hard money rehab loans please call us at 877 462 3422. We will be happy to discuss your transaction and experience level and discuss the various ways we can structure your deal.