Philadelphia Fix and Flip Lenders
Are you flipping residential properties in the Philadelphia metro area? On this page you'll find a list of fix and flip lenders throughout Philadelphia's urban areas. Fix & flip lending is only for residential properties with 1-4 units. We have a separate page for lenders that offer rehab/value-add financing for other property types. The maximum loan-to-after repair value (LTARV) for most lenders in Philadelphia is 70%. You typically need some cash for the purchase (15%-20%) and some cash reserves.Searching...
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Funded Fix & Flip Loans in Philadelphia
I Fund Cities, an alternative lending platform, funded a $613,020 fix and flip loan in senior lien position for 2 properties in Philadelphia, PA. One property is a duplex and the other is a 2-unit mixed-use property with 1 residential unit and retail on the ground floor. The purchase price was $500,000 and the renovation budget was $221,200. We funded 78% of the purchase price and 100% of the renovation budget. The after-repair value was $1,020,000 so our loan-to-after-repair value was 60%. The Borrower was in process with another lender for over 90 days and had already received multiple extensions from the seller to close the loan. The Borrower needed a lender to make up for lost time and get them to the closing table quickly, and reliably. We made it happen! We received documentation for the loan on a Monday afternoon. Then, Cole Goudge, one of iFC’s super knowledgeable and ready-to-get-it-done loan officers, coordinated everything needed with the Borrower. We closed on Friday afternoon. The Borrower was able to purchase two new projects with the help of our team. The loan term was set at 12 months. This fix and flip loan was funded in August 2022.
This Client was a full-time real estate agent/broker who also passively invests in real estate. He had eight flips under his belt and owned ten rental properties in the higher-end luxury home market in Philadelphia, Pennsylvania. The Borrower typically uses cash to fund acquisitions and construction costs, however he was running into cash flow issues due to high construction costs. Although the Borrower liked the flexibility of using his own cash to avoid managing draw requests, he no longer had the ability to fund 100% of construction over his three active properties without depleting his cash reserves. This successful investor found himself stuck—needing to choose between selling one of his three projects at 50% completion or finding another option. To make matters worse, the Borrower had subcontractors breathing down his neck and he did not have the luxury of time to wait for a bank, nor would they be able to offer him the leverage he needed. A mutual contact in the real estate community referred the Borrower to iFC’s co-founder Chris Tereo. After hearing the investor’s dilemma, Chris walked the investor through a creative financing technique called “delayed financing.” Essentially, this meant that, by leveraging the original purchase price of the house, iFC could give the investor a “cash out” loan to help him recoup some of the construction costs he had already spent. Then, in addition, iFC would fund 100% of the construction costs in holdback. This SFR fix and flip loan was funded in February 2022.
Key Loan Benefit to Borrower:
The ability of iFC to be flexible in this situation not only gave the investor enough capital to finish the three projects he was involved in but, since he had purchased the majority of his assets in 100% cash, the extra liquidity provided him enough capital to purchase a fourth project! The investor saw the value of using debt in a smart way, so much so that he decided to scale his business by using his cash for the 15% of equity needed in deals, and IFC for the remaining 85% in debt.
Customer Feedback:
“Not only did my projects get saved, I also increased my cash-on-cash return by leveraging my capital!”
Erik, one of our super-on-it i Fund Cities loan officers, met a property investor at a local real estate meetup event in Philadelphia, Pennsylvania (Btw, come on out and network with an excellent group of other investors on Tuesday nights at the Hotel Sofitel)! The investor had already done several real estate investment projects in Philadelphia, including fix and flips, rental, and multifamily. This deal was a fix and flip. His deal was supposed to close around October 2021. But, as the closing date drew near, the title company found out that there was an issue with clearing a city lien from the title. They needed a city tax release, which would hold up closing. As the closing date kept getting pushed back, the investor’s private money backers wanted to place their money elsewhere, and they pulled out. That is when the investor called Erik. Erik told him that i Fund Cities would stand by him and be there to close this loan once the lien was cleared. Erik immediately got the appraisal transferred into our name and began the underwriting process. Erik assured this investor that iFC was here to customize his loan to fit the current needs surrounding the deal. We ended up fully funding the project construction along with 75% of the down payment for the purchase of the property. This SFR fix and flip loan was funded in January 2022.
Key Loan Benefit to Borrower:
Says iFC Loan Officer Erik, is “We won this deal by supporting a customer when other sources of capital weren’t available. Because of this, we hope that we have won a customer for life. In fact, we are in the process of running down this investor’s next deal!”
Customer Feedback:
“This client called me the day after closing to say how much of a stress relief this was to get it to the closing table and how he thought the deal was lost multiple times before calling me,” says Erik.