Alexandria, Virgina

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.