Situation:

Asset Based Lending recently funded a fix and flip loan in Jersey City New Jersey. The borrower is a repeat borrower and full-time real estate investor. Due to the borrower’s experience level and ongoing relationship with ABL, they were granted an extended 18-month loan instead of the typical 12 months. The property was purchased for $677,000 with a renovation budget of $475,500 and total loan funded at 82% LTC. The existing property will be demolished and become a two-unit or three-unit condo depending on permits. Each unit will be 3-bedroom, 2-bathroom measured at a total 4,422 square feet. Units will receive high-end finishes and feature hardwood floors, 10-foot-high ceilings, large open-window façade, and new appliances in the kitchens. Renovation is expected to take between eight and ten months with final sale occurring within two months of project completion.