Fix and Flip – Brooklyn, New York
Few residential properties are more classically iconic than the Brooklyn Brownstone. A broker introduced us to an investor who wanted to take one of these classics, a 1910 building in the historic Bed-Stuy section of Brooklyn, New York, and update it for today’s market needs.
The investor’s plan was to take this four-story, four-unit Brownstone and update it into a three-family unit with optimal floor space. The renovations include new flooring, fixtures, appliances, and paint, while maintaining the classic Brownstone look.
Lima One financed this fix-and-flip project with a $1.8 million loan that included a $367,000 rehab budget. The interest-only loan includes commitment funding, so that the investor pays no interest on undrawn construction funds. With this loan, the investor will upgrade the value of the property by $1 million, and the broker is fully protected on this loan and all future loans. Most importantly, three families looking to live in Bed-Stuy will have a wonderful place to live.
Fix and FlipBy The Numbers
- Loan Amount: $1.807 million
- Construction Budget: $367,000
- Loan-to-Cost Leverage: 92%
- After-Repair Value: $2.7 million
- Loan-to-After-Repair-Value Leverage: 67%
- Loan Term: 13 months
- Interest Only
- Commitment Funding
- In-House Construction Draws and Servicing
- Broker Protected