Situation:

Asset Based Lending recently funded a new construction hard money loan in Newark, NJ. The borrower is a repeat borrower and experienced investor. The property was purchased for $340,200 with a renovation budget of $140,000 and total loan funded at 89% LTC. The property is a three-unit multi-family with one unit being 3-bedroom, 1-bathroom and two units being 4-bedroom, 2-bathroom with a total square footage of 4,500. Borrower plans on holding this property as an income-producing asset with our rental refinance program. Prior owner attempted to rehab property but did not complete project, so borrower is taking over. Interior renovation will include full gut of each kitchen and bathroom including new granite countertops and mid-range appliances, new windows, new floors, and fresh coat of paint. Exterior updates will include fresh coat of paint and stucco where needed. Project is expected to take four months with final sale occurring between two and three months after completion.