Situation:

Asset Based Lending recently funded a hard money fix and flip loan in Belleville New Jersey for a repeat borrower with extensive real estate investing experience. The property was purchased for $215,000 with a renovation budget of $150,000 and total loan funded at 90% LTC. This loan was originally funded by another hard money lender. When that lender failed to satisfy draw management requirements, the borrower asked ABL to refinance and take over the loan. The property is a two-unit multi-family home with each unit being 3-bedroom, 1-bath. After rehab is complete, the investor plans to refinance the property using ABL’s rental loan financing to keep the property as an income producing asset. Interior renovations will include gutting each unit mostly to the studs, building them back up with open floor plans using higher grade material. Other upgrades include the installation of two new furnaces, installation of central air in each unit, and all new lighting and outlets. Exterior renovations include cosmetic and structural updates including new roofing, new siding, new driveway, and new front steps.