Situation:

Asset Based Lending recently funded a fix and flip loan in Irvington New Jersey. The borrower is a repeat borrower and experienced real estate investor. The property was purchased for $330,000 with a renovation budget of $39,700 and total loan funded at 87% LTC. The property is a two-unit multifamily with each unit being 3-bedroom, 1-bathroom measured at a total of 2,490 square feet. The borrower is planning to flip the property, but is considering holding it as an income-producing asset with ABL’s rental refinance program. Renovation will be largely cosmetic with a focus on updating the kitchen and bathrooms. Kitchen will receive new countertops and appliances while the bathrooms receive new tubs, vanities, and toilets. Other work includes new siding, new interior doors, updated electrical fixtures, and general landscaping improvements. Project is expected to take up to six months with final sale or loan refinancing occurring shortly after completion.