Today’s deal comes from Michael Chadwick, who closed this hard money fix and flip loan in Nashua, New Hampshire. This deal is a blanket loan that covers seven different properties totaling 38 rent-ready units that require various levels of cosmetic work. The properties were purchased for $2,650,000 with a renovation budget of $292,500 and total loan funded at nearly 87% LTC. The borrower is a duo of highly experienced full-time real estate investors and repeat borrowers with Asset Based Lending.
This borrower duo does their own marketing to find off-market properties and was contacted by a widow looking to sell her late husband’s rental portfolio. They’ve done deals with Mike for years and had only recently used ABL for the first time. When Mike was told about the deal, he told the duo about our new term rental loans, allowing them to purchase this portfolio and finance the renovation before refinancing the deal into a long-term rental loan. Once they knew they could have ABL’s five-star servicing with this rental portfolio, they knew we were the right choice.
A deal like this can only happen thanks to our new rental loan program. Being able to structure the purchase of an entire portfolio and smoothly transition it to the long-term rental side of things is a huge win.
“A deal like this can only happen thanks to our new rental loan program. Being able to structure the purchase of an entire portfolio and smoothly transition it to the long-term rental side of things is a huge win for ABL,” said Mike.
These properties all received recent major updates in the last five years including new heating systems and mechanical work, so most units are rent-ready. Renovation will be light across all properties, consisting of mostly cosmetic work such as fresh paint, wall repairs, updated light fixtures, landscaping, and more. The most intensive work will be a couple units receiving updated bathrooms and kitchens with mid-level finishes consistent with the market.
This deal was made possible due to these borrowers doing independent marketing and research to find off-market properties in a low inventory market. With the eviction moratorium in place over the last year, coming across rental property or being able to fill vacancy in certain markets has become very difficult, meaning investors need to get creative with how they find their deals. “I’ve worked with this duo for years now and they’re total pros. Always putting in the extra work needed to find these great deals, so all they need is fast and reliable financing to finish the job,” said Mike.
Mike covers the New Hampshire and other New England markets, bringing two decades of expertise and professionalism to real estate investors in the area. If you’re looking to finance your rental property, fix and flip, or new construction project, then contact Mike today.