Fix & Flip Loan for SFR in Lithonia, Georgia

Deal Details

Private Loan Type

Residential Fix and Flip

Approx. Funding Date

08/05/2023

Property Type

Single Family Residence

Property City

Lithonia

Property State

Loan Term (months)

Payment Type

Interest Only

Purchase Price

$284,900

Loan-to-Purchase Price

80%

Borrower's Contribution to Purchase

20%

Source of Borrower's Contribution

Cash

Renovation Budget

$40,000

Renovation Budget Funded

80%

Borrower's Contribution to Budget

20%

After-Repair Value

$400,000

Loan-to-After-Repair Value

65%

Renovation Project Scope

Cosmetic

Property Condition

Good

Occupancy at Closing

Vacant

Building Square Footage

2,867

Lot Square Footage

13,068

Borrower's Plan

Rehab and Sell

Exit Strategy

Sale

Borrower Credit Rating

Excellent

Interest Rate

10.90%

Origination Points

2.5%

Deal Summary

Easy Street Capital, a direct private real estate lender, funded a $259,920 1st lien position fix and flip loan for a single-family home in Lithonia, Georgia. We funded 80% of the $40,000 renovation budget and 80% of the $284,900 purchase price, while the Borrower contributed 20% cash respectively at closing. The after-repair value was estimated at $400,000 so our loan-to-after-repair value was 65%. The novice Borrower has one completed flip and great credit with cash reserves, lower leverage at 80% LTC and 65% LTV. They have a GC who is an ESC customer and work quality can be seen on 833 Smith St. They plan to sell the property upon completion of the cosmetic renovation with some servicing of the utility systems and demolition. The interior of the home will be getting new paint, flooring, appliances, and an updated kitchen/bathroom. The exterior of the home will be getting new roofing, pressure washing, landscaping, and final cleaning. Once the home has been completed the Borrower will then sell. The subject property is less than a mile from Princeton Elementary School. It is approximately 2,867 square feet set in a 13,068-square-foot lot. The interest rate was 10.90% and we charged 2.5% origination points. The loan term was set at 6 months. This SFR fix and flip loan was funded in August 2023.