Fix & Flip Loan for Property in Alexandria, Virginia

Funded by Lima One Capital

334,000

Deal Details

Private Loan Type

Residential Fix and Flip

Approx. Funding Date

06/01/2022

Property Type
Single Family Residence
Property City

Alexandria

Property State

VA

Loan Term (months)

13

Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price

$310,000

Loan-to-Purchase Price

92%

Renovation Budget

$55,000

Renovation Budget Funded

100%

After-Repair Value

$470,000

Loan-to-After-Repair Value

71%

Renovation Project Scope

Light Rehab

Property Neighborhood

Alexandria

Location Type

Suburban

Property Condition

Fair

Borrower's Plan

Rehab and Sell

Exit Strategy

Sale

Deal Highlights

6 Days - Time to Close.
No interest paid on undrawn construction funds.
100% of rehab budget financed.
90% of property purchase financed.

Deal Summary

The Opportunity

An experienced flipper had the opportunity to purchase a condo in the Washington, D.C., suburb of Alexandria, Virginia—but needed to move quickly. The 941-square foot condo, built in 1941, needed capital expenditures for a new roof and updated electrical, as well as cosmetic updates to bring it back up to market expectations. Due to the demand in one of D.C.s most desired suburbs, the rehabbed condo could turn a considerable profit.

The borrower was already approved for credit exposure with Lima One, and was in process on several other deals at the time. So he came to his sales rep with the request for an expedited close to purchase the property in a fast-moving real estate market so he could capitalize on this opportunity.

The Solution

Lima One was able to close this FixNFlip loan in just six calendar days after application. With a 92% blended loan to cost, the borrower was able to cover the entire rehab budget and 90% of the purchase price, limiting the down payment.

Due to the age and condition of the property, Lima One’s pre-close construction budget review revealed the need for the borrower to add more extensive roof and electrical upgrades to mitigate risk and maximize profits on the investment. The rehab budget increased along with the available drawable funds; however, the borrower was not responsible for interest on undrawn construction funds, allowing him to manage cash flow throughout the rehab. With Lima One’s construction draw process, the borrower could access money when needed throughout the project.

Lima One’s FixNFlip financing makes this deal a home run for the investor—with the ability to make a 20% profit of $60,000-plus when selling the flip.

The subject property was in fair condition at closing. The Borrower plans to lease the property at the market and eventually refinance as an exit strategy. The loan term was set at 13 months. This fix and flip bridge loan was funded in June 2022.

Funded By

Lima One Capital

The Nation's Premier Lender for Real Estate Investors

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