$264K fix & flip in Omaha, NE — 85% LTC, 12-day close
Illustrative case study modelled on typical files for this program; figures are examples, not a funded loan.
- Purchase
- $230,000
- Renovation budget
- $80,000
- After-repair value
- $405,000
- Loan
- $263,500
- Loan-to-cost
- 85%
- Rate
- 9.00%
- Points
- 2
- Term
- 12 months, interest-only
- Days to close
- 12
- Units
- Single-family
- Exit
- Sale
Situation
An investor bought a well-kept but dated Omaha house in a neighbourhood where updated homes sell quickly to move-up buyers.
Structure
The loan funded 85% of the $310,000 cost at 9.00% with two points, inside the 75% cap on the $405,000 after-repair value. A complete file produced a 12-day close.
In numbers: a $263,500 loan against $310,000 of total cost left $46,500 of borrower equity in the deal. The value test — 75% of the $405,000 after-repair value ($303,750) — sat above the loan, so cost, not value, set the size. Fully drawn, interest-only carry at 9.00% works out to about $1,976 a month, and 2 points of origination came to $5,270 at closing.
Draws
Two draws — interior finishes and exterior — were reviewed remotely.
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 within weeks of listing, retiring the loan with no prepayment penalty.
- Cosmetic scope, no permits
- Complete file on day one
- Strong move-up buyer demand
- Wide cost-to-value spread
