Situation:

Asset Based Lending recently funded a fix and flip loan in Leominster Massachusetts. The borrower is a repeat borrower and experienced real estate investor. The property was purchased for $320,000 with a renovation budget of $62,000 and total loan funded at 92% LTC. The property is a two-unit multifamily with each unit being 2-bedroom, 1-bathroom measured at 1,200 square feet. The borrower will hold the property as an income-producing asset with ABL’s rental refinance program. Renovation will be largely cosmetic with new floors in the bedrooms, new roof, electrical updates, and fresh coat of paint. The kitchens will receive new mid-grade appliances along with new cabinets, countertops, and tile floors while the bathrooms will receive tile floor and new vanities. Project is expected to take six months with loan refinance occurring shortly after completion.