Situation:

Asset Based Lending recently funded a fix and flip loan in Linden New Jersey. The borrower is a repeat borrower and full-time real estate investor. The property was purchased for $490,000 with a renovation budget of $100,000 and total loan funded at 83% LTC. The borrower plans on holding this property as an income-producing asset with ABL’s rental refinance program. This property is a mixed-use building that features two residential units and one commercial office unit. The residential units are a 3-bedroom, 1-bathroom and a 2-bedroom, 1-bathroom while the commercial office is currently a dentist’s office with a combined square footage of 2,250. The building will receive roof repairs and siding repairs while all units will receive a fresh coat of paint along with updated electrical and plumbing. Bathrooms will receive various updates and repairs while kitchens receive all new appliances. Renovation is expected to take six months with refinance occurring shortly after completion.