Asset Based Lending recently funded a property purchase only with a first-time borrower and experienced real estate investor in Rossville, Georgia. This single-family detached home was purchased for $248,000 with a loan amount of $150,000 and an appraised value of $250,000. This is a property where the borrower is the second lien holder and is buying the property from the current owner who has defaulted on their loan with the first position lender. The borrower provided a $108,000 second lien for the remainder of the construction that consisted of kitchen and bathroom finishes, and flooring, electrical, plumbing, painting, and exterior repairs. The borrower will release their lien at closing, which will be counted as the liquidity needed for the down payment of the home. With a 12-month loan term, the exit strategy is to refinance and hold with Asset Based Lending. The borrower needs 6 months of seasoning, and the market rent was appraised at $1,800 monthly.
