$349K fix & flip in Providence, RI — 85% LTC, 13-day close

Situation

A repeat investor bought an older Providence single-family house needing a full renovation in a neighbourhood where updated homes draw multiple offers.

Structure

The loan funded 85% of the $410,000 cost at 9.00% with two points, inside the 75% cap on the $540,000 after-repair value. Permits and the GC’s bid were in at application; the close took 13 days.

In numbers: a $348,500 loan against $410,000 of total cost left $61,500 of borrower equity in the deal. The value test — 75% of the $540,000 after-repair value ($405,000) — sat above the loan, so cost, not value, set the size. Fully drawn, interest-only carry at 9.00% works out to about $2,614 a month, and 2 points of origination came to $6,970 at closing.

Draws

Four milestone draws — demolition, systems, kitchen and baths, 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 renovated home sold quickly, retiring the loan inside the term.

• Strong renovated comparables
• Permits ready at application
• Experienced local GC
• Full renovation budget funded

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