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$221K fix & flip in St. Louis, MO — 85% LTC, 12-day close

Illustrative case study modelled on typical files for this program; figures are examples, not a funded loan.

Purchase: $160,000
Renovation budget: $100,000
After-repair value: $340,000
Loan: $221,000
Loan-to-cost: 85%
Rate: 9.00%
Points: 2
Term: 12 months, interest-only
Days to close: 12
Units: Single-family
Exit: Sale

Rendering — after renovation, St. Louis, MO

THE STORY

Situation

A repeat flipper bought a brick St. Louis house with good bones and a heavy but predictable scope: mechanicals, kitchen, baths and full finishes.

Structure

The loan funded 85% of the $260,000 cost at 9.00% with two points, inside the 75% cap on the $340,000 after-repair value. The investor’s completed-project list made the experience review quick; the file closed in 12 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 $340,000 after-repair value ($255,000) — 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 were released against photos and invoices from the investor’s regular crew.

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.