Fix and Flip Bridge Loan- $2.2 Million

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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