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Summit, New Jersey Purchase & New Construction

Address: Summit, NJ
Borrower Profile: Experienced Builder and Investor
Work Description: Gut renovation and ground floor construction addition of suburban 5 bedroom in 5 draws
Purchase Price: $500,000
Renovation Budget: $300,000
Loan Amount: $680,000
Cash Available for Purchase: $380,000
Cash Available for Renovation: $300,000
Loan Structure: 12 months interest only
Loan Purpose: Property Purchase And New Construction
ARV: $1,100,000
Sale Price: $1,050,000
Time To Pay Off: 9 months
Situation:

Broker contacted ABL on behalf of his client. We met with the borrower in the field to look at his work product which we judged to be very high quality. The borrower, who was also the project manager and general contractor,  had considerable experience in projects of this sort but not in the subject town. Anticipated problems principally concerned the town and whether it would issue the necessary approvals in a timely fashion.  The borrower also had sufficient financial reserves to allow for potential delays.

Outcome:

The project was completed with very high quality finishings and quickly sold. Timelines were longer than hoped given the time that the town took to approve and inspect the project. In spite of a slightly less than expected sale price, the  project was highly profitable for the borrower.

nj hard money lending case study living room
Living Room Before
nj hard money lending case study Living Room After
Living Room After
new jersey hard money lender case study basement renovation
Basement Before
new jersey hard money lenders based renovation
Basement After
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