$162K fix & flip in Jackson, MS — 85% LTC, 11-day close

Situation

A local flipper bought a Jackson house at an entry price point where the renovation budget was nearly half the total cost — exactly the file 100% renovation funding is built for.

Structure

The loan funded 85% of the $190,000 cost at 9.00% with two points, inside the 75% cap on the $250,000 after-repair value, and closed in 11 days.

In numbers: a $161,500 loan against $190,000 of total cost left $28,500 of borrower equity in the deal. The value test — 75% of the $250,000 after-repair value ($187,500) — sat above the loan, so cost, not value, set the size. Fully drawn, interest-only carry at 9.00% works out to about $1,211 a month, and 2 points of origination came to $3,230 at closing.

Draws

Three draws — systems, interior, finishes — were released on photos and invoices.

The file

What was in the file: the purchase contract, the itemised scope of work and renovation budget, the after-repair value estimate with comparable sales, the GC agreement with license and insurance, two months of bank statements showing the cash to close and six months of reserves, and the LLC documents and ID. The appraisal valued the house as renovated against recent comparable sales nearby. Every checklist item came back inside 48 hours, which kept the close at the fast end of the range. Title was opened on the day of application and insurance was bound before the appraisal came back. The term sheet set the final leverage and pricing against the published maximums.

Exit

The house sold to a first-time buyer, and the investor moved straight to the next project.

• Full renovation budget funded
• Entry price point with deep buyer demand
• Simple three-draw schedule
• Fast 11-day close

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Fix & flip loans in Mississippi →