Purchase & Rehab Bridge Loan for SFR in Philadelphia, Pennsylvania

Easy Street Capital, a direct private real estate lender, funded a $331,500 1st lien position bridge loan for the acquisition of a single-family home in Philadelphia, Pennsylvania. We funded 85% of both the $320,000 purchase price and $70,000 renovation budget, while the Borrower contributed 15% cash respectively. The after-repair value was estimated at $480,000 so our loan-to-after-repair value was 70%. The Borrower is an experienced real estate investor with 6+ rentals in the Philly market, and is also a licensed general contractor. One partner had a good credit score and adequate cash reserves that exceeded the required amount. They are also only a 30-minute drive away from the subject property and can directly oversee the project. They will be doing a cosmetic rehab of the subject with some servicing of the utility systems and permits. The interior of the home will be getting new windows, doors, trim, drywall, paint, insulation, flooring, an updated kitchen/bathroom, and new appliances. The exterior of the home will be getting new roofing, landscaping, framing, and rain gutters. The subject property is approximately 1,442 square feet set in a 2,267-square-foot lot. The Borrower plans to lease the property upon completion of the rehab and eventually refinance as an exit strategy. The interest rate was 10.90% and we charged 2% origination points. The loan term was set at 6 months. This SFR rehab loan was funded in June 2023.