$196K fix & flip in Wichita, KS — 85% LTC, 12-day close

Situation

An investor bought a vacant Wichita house needing a full interior renovation — the renovation budget nearly matched the purchase price, so 100% renovation funding was the point of the loan.

Structure

The loan funded 85% of the $230,000 total cost at 9.00% with two points, covering the purchase and the entire renovation budget, inside the 75% cap on the $300,000 after-repair value. It closed in 12 days.

In numbers: a $195,500 loan against $230,000 of total cost left $34,500 of borrower equity in the deal. The value test — 75% of the $300,000 after-repair value ($225,000) — sat above the loan, so cost, not value, set the size. Fully drawn, interest-only carry at 9.00% works out to about $1,466 a month, and 2 points of origination came to $3,910 at closing.

Draws

Four draws — demolition, mechanicals, interior build-out, 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 to an owner-occupant, repaying the loan inside the term.

• 100% of the renovation funded
• Rehab-heavy basis worked inside the caps
• Clear milestone plan
• Affordable price point for resale

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