$1.2M flip loan and GAP loan for purchase and construction
Loan Amount: $1,292,000
Type: Flip Loan with GAP
Term: 9 months
Client wanted to purchase a property with the sole intention of flipping the property to earn a profit. The client needed to get a 9-month flip loan with a $300k GAP loan to facilitate the construction work on the home. The original loan amount was taken out for $1,292,000 with an LTV of 72%. This was the first mortgage on the property.
Mid-construction, the client put down 11% with no hold-backs required in order to get the $300k GAP loan funded as the second mortgage. This second loan had an LTV of 89%. The Sleepy Hollow property was vacant and renovations could begin immediately. The $300k GAP loan was taken out as a 9-month flip loan mid-way through construction, which gave the borrower time to finish construction and flip the property. The sale of the property made it possible for the borrower to pay off both loans and make a profit.
The property itself was a 5-bed, 4-bath single residence home in San Anselmo, CA. The house was sold in “As-Is” condition, but was located in an ideal setting. The home had already undergone renovations, but they had not been completed. It was the perfect situation for a developer who wanted to finish the remodel and sell the home for its full value. The market was hot and the area was highly sought after, which lowered the overall investment risk. First Bridge Lending approved the client for the initial mortgage loan as well as the GAP loan based on the property’s potential and the client’s financing portfolio.
First Bridge Lending agent Chris Carey facilitated this deal and helped the client secure funding in time to purchase the property as well as complete construction work and renovations with additional GAP funding. When it comes to renovation and construction projects where the goal is to flip the property for a profit, trust First Bridge Lending to help you secure both pieces of funding needed to complete your project.