Quick Closing Fix and Flip Loan – Charlotte, NC
What would you do if you needed to close a loan to purchase an investment property in two weeks or less? A Charlotte, NC real estate investor emailed Lima One.
Lima One’s in-house underwriting team immediately got to work, processing the loan to meet the client’s deadline. In just eight business days, the deal was closed, and the client owned the property.
“Thank you for all your work and hustle to get this done so quickly, especially for a new client! Definitely looking forward to doing some more soon. We’ll be knocking on your door again.”
Fix and Flip Loan By the Numbers
- Loan Purpose: Purchase and Rehab
- Loan Amount: $355K
- Loan-to-Value Leverage: 66%
- Loan Term: 13 months
- Interest Only
- Purchase Price: $294,000
- Rehab Budget: $125,000
- List Price: $600,000
- Profit: $200,000+
Quick Close and Great Leverage Lead to Profit
The $355,000 loan on this Charlotte home provided 85% loan to cost on the $294,000 purchase price plus the $125,000 rehab budget, while leaving plenty of room for profit. While the appraised after-repair value of $535,000 gave the investor 66% LTARV leverage, the actual fix-and-flip profit was much more—as the home listed for $600,000. As a result, this quick close gave the investor an actual profit of well over $200,000.