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Deal Details
Private Loan Type
Residential Fix and Flip
Approx. Funding Date
06/01/2024
Property Type
Property City
Columbia
Property State
MO
Loan Term (months)
12
Lien Type
1st Trust Deed
Payment Type
Interest Only
Purchase Price
$210,000
Loan-to-Purchase Price
90%
Borrower's Contribution to Purchase
16%
Source of Borrower's Contribution
Cash
Renovation Budget
$13,000
Renovation Budget Funded
100%
After-Repair Value
$270,000
Loan-to-After-Repair Value
70%
Renovation Project Scope
Light Rehab
Location Type
Suburban
Property Condition
Fair
Occupancy at Closing
Vacant
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Borrower Credit Rating
Average
Interest Rate
12.5%
Origination Points
3%
Deal Summary
Minnow Loan, a local Missouri direct private lender, funded a $189,000 1st lien position fix and flip loan for a single-family home in Columbia, MO. We funded 90% of the $210,000 purchase price and 100% of the $13,000 renovation budget, while the Borrower contributed 16% cash to the purchase at closing. The property was valued at $224,600 as-is, with a $270,000 after-repair value. Our loan-to-after-repair value was 70%. The Borrower was an experienced real estate investor and contractor. They had average credit. This is our 2nd project with this Investor; the first went so well, that he was able to roll the proceeds using a 1031 exchange into this deal. The plan is to keep the property as a rental upon completion of the light rehab and eventually refinance after the time limit on the 1031 exchange expires. The interest rate was 12.5% and we charged 3% origination points. The loan term was set at 12 months. This SFR fix and flip loan was funded in June 2024.
Funded By
Minnow Loan
Your Deal. Our Money.
Dealmakers
Shelby Reed
Co-Founder