The borrower is a first-time real estate investor that found the property for sale on Auction.com. The investor considered holding the property as an income producing asset but decided to sell. Renovations were mostly cosmetic, covering repairs such as fixing broken windows, fresh paint and plastering for all trims, sanding and painting all cabinets, and updates to interior and exterior doors. Vinyl flooring was installed in the kitchen, bathroom, and living room while carpet flooring was installed in the bedrooms, hallways, and stairs. The plumbing system was improved and both the sinks and faucets in the bathroom and kitchen were replaced, as well as an electric heat board added to the home’s office room. The deal closing and renovations both occurred during COVID, adding a level complexity to this fix and flip loan in New Jersey.
The property was put under contract shortly after renovations were complete for well-above the estimated ARV. This deal marked an excellent first real estate investment for our borrower, who is now looking for more deals to invest in with Asset Based Lending.