Appraisal ARV(after repair value) of $450,000
Escrow required to fix up: $100,000 Total hard money loan required: $290,000
Of the $290,000 total cost, borrower paid 5% cash at closing, $14,500 plus closing costs (around another 5%).
The closing title company held all of the $100,000 in escrow which was released as work was completed and confirmed by the appraiser at key stages.
The lender offered a total loan of $290,000 - $14,500 = $275,500 which is 61% LTV.
An interest only loan of $275,500 at 9% was $2,066.25 per month with a balloon of $275,500 due after 24 months.
When the property was purchased it was in good enough condition to rent out temporarily for 6 months while plans and permits were in progress. This reduced the holding costs for the borrower.
Added an extra bathroom making it a 3 bed 2 bath Converted the Florida Room into a new larger kitchen Converted the garage to make a much larger master bedroom. New roof with a focus on energy saving materials using SIP Panels which are highly insulated and rated to 200 mph wind. HERS score of 64 which is 36% more efficient than new build. The sq ft was increased from 1,188 to 1,500.
It took 6 months to obtain permits and complete plans. The build was finished in 5 months The property was sold for $474,000
Tampa Bay Financing are Commercial Hard Money Mortgage Brokers working with select Private Hard Money Lenders in Tampa, Florida.
4532 West Kennedy Blvd
Unit 267 Tampa, FL 33609
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