Situation:

Asset Based Lending recently funded a fix and flip loan in Vernon Connecticut. The borrower is a first-time borrower and experienced real estate investor. The property was purchased for $150,000 with a renovation budget of $190,200 and total loan funded at 90% LTC. This property is a four-unit multi-family measured at 4,800 square feet with two units being 3-bedroom, 1-bathroom and the other two units being 4-bedroom, 1-bathroom. The borrower plans on refinancing this bridge loan into a rental loan with ABL’s rental refinance program. Property is undergoing a gut renovation that will include completely new kitchens with stainless steel appliances, converting backyard into park-in lot, building a front porch, replacing windows, and a fresh coat of paint. Renovation is expected to take three months with refinance occurring 30 days after completion.