Situation:

Asset Based Lending recently funded a hard money fix and flip loan in Union New Jersey for a first-time borrower with limited real estate investing experience. The property was purchased for $161,500 with a renovation budget of $120,000 and total loan funded at 85% LTC. The property is a single family detached 4-bedroom, 1.5-bath that will be transformed into 5-bedroom, 2.5-bath measured at 1426 square feet. The borrower will be changing the footprint of the property layout resulting in total gut renovations, but they will not be adding any square footage. The property rehab is expected to take approximately 4 months, but the borrower is determined to finish it in 3. Borrower is expecting to sell the property within 2 months of final rehab.