Large fix and flip deal for a three family that we closed for one of our repeat borrowers. Our borrower purchased this property for $1.35M. There was a $90k seller concession that we allowed to be included in the financing (we don’t typically allow for seller concessions). This property needed significant renovations. Our borrower specializes in very high-end renovations and adds outdoor space when possible. This allows our borrower to get a premium rental income when the property is completed. This particular property needed about $1.2m of renovations. This was considered a “heavy rehab” because the rehab amount was almost 100% of the purchase price. Once completed, the property is estimated to be worth north of $3.5M. Our initial advance to this borrower was 80% of Purchase Price, which was fairly high leverage for a heavy rehab deal. Adding the in the renovation holdback, our total loan was $2.163M, which was less than 60% of the After Repaired Value.
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