Situation:

Asset Based Lending recently funded a fix and flip loan in Garfield New Jersey. The borrower is a repeat borrower and experienced real estate investor. The property was purchased for $380,000 with a renovation budget of $154,200 and total loan funded at 89% LTC. The property is a two-unit multifamily where one unit will become 3-bedroom, 2-bathroom and the other unit will become 4-bedroom, 1-bathroom measured at a combined 2,245 square feet. The borrower will hold the property as an income-producing asset with ABL’s rental refinance program. This gut renovation will see the basement combined with the first floor to create the first unit, while the second floor will be combined with the attic for the second unit. Kitchens will receive quartz or granite countertops, wood cabinets, and mid-grade stainless steel appliances. Other improvements include new lighting, new vinyl windows, and new HVAC system. Project is expected to take two months with loan refinance occurring shortly after completion.