Situation:

Asset Based Lending recently funded a hard money fix and flip loan in Newark NJ for a repeat borrower with limited real estate investing experience. The property was purchased for $199,000 with a renovation budget of $15,000 with a total loan funded at 81% LTC. The borrower’s exit strategy is to refinance and rent out the property for $1,500 per unit per month with the help of our rental loan refinance program that transitions the borrower’s fix and flip loan into a term rental loan. This multi-family home is 2178 square feet separated into two units, both being 2-bedroom, 1 bath that will be undergoing cosmetic renovations. Updates will include fresh coats of paint, new tile floors, and other clean up. This is our second time lending to this real estate investor, but ABL takes all previous experience and deals into account when structuring loans with our borrowers.