$221K fix & flip in Detroit, MI — 85% LTC, 11-day close

Situation

A flipper with more than ten completed projects bought a brick colonial priced well below renovated comparables, with a heavy but predictable scope: roof, windows, mechanicals and a full interior.

Structure

The renovation budget was a large share of total cost, so 100% renovation funding mattered. The loan priced at 85% of the $260,000 cost at 9.00% with two points, inside the 75% ARV cap, and closed in 11 days.

In numbers: a $221,000 loan against $260,000 of total cost left $39,000 of borrower equity in the deal. The value test — 75% of the $330,000 after-repair value ($247,500) — sat above the loan, so cost, not value, set the size. Fully drawn, interest-only carry at 9.00% works out to about $1,658 a month, and 2 points of origination came to $4,420 at closing.

Draws

Four milestone draws — exterior envelope, mechanicals, interior build-out and finishes — were released against photos and invoices.

The file

What made the file quick: a repeat flipper with a long list of completed projects is a Tier 3 file, so the experience review was a formality rather than a hurdle. The scope of work came from the investor’s regular crew with line-item pricing they had used on earlier houses, and the after-repair value rested on recent renovated sales a few streets away. Reserves and entity documents were already on record. The property was non-owner-occupied and the borrower’s credit was well above the 680 minimum, so underwriting conditions were limited to title and insurance.

Exit

The house sold to a first-time buyer, and the investor brought the next project to the same desk as a Tier 3 repeat file.

• 100% of renovation funded
• Repeat-builder track record
• Predictable scope with clear milestones
• Price point with deep buyer demand

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