Situation:

Asset Based Lending recently funded a hard money fix and flip loan in Irvington New Jersey for a first-time borrower with previous real estate investing experience. The property was purchased for $175,000 with a renovation budget of $315,000 and total loan funded at 77% LTC. The borrower is a family that buys and holds multi-family rental property together. After rehab is complete, the investor plans to refinance the property using ABL’s rental loan financing to keep the property as an income producing asset. The property has four different units split into two separate unit types. The units are measured at 1350 square feet and 1100 square feet respectively, with both unit types having 2-bedrooms, 1-bath. Only one unit in the property is being rehabbed and will be undergoing mostly cosmetic renovations. Rehab will include mid-range upgrades to the entire unit with focus on the bathroom, kitchen, and flooring. Basic landscaping and heating unit upgrades will occur to maximize the units’ rental value.