Asset Based Lending recently funded a fix and flip loan in Gardner MA. The borrower is a repeat borrower and full-time real estate investor. The borrower was granted an 15-month interest loan instead of the typical 12-month to allow the property’s NOI to stabilize and benefit the borrower’s economics for this deal. The property was purchased for $80,000 with a renovation budget of $650,000 and total loan funded at 83% LTC. The borrower will hold this property as an income-producing asset with ABL’s rental refinance program. This property is an eight-unit condominium with each unit being 2-bedroom, 1-bathroom measured at approximately 723 square feet. Building and units require complete rehab after a small fire damaged the property. Renovation will include replacing the roof, replacing some windows, adding fire panel and sprinkler, refinishing hardwood floors, and medium-level finishes. New kitchens will include granite countertops with stainless steel appliances, while new bathrooms will include walk-in shower, tile floors, and granite vanities. Renovation is expected to take six months with fully leased tenants expected within 12 months of completion.
