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Chris Goulart, Broker Associate, DRE Lic. # 01458390 NMLS Lic. # 298819 Bay Mountain Mortgage broker Lic. #01227690
This property located in Oakland was a fix and flip transaction. The property was in need of updating and cosmetic rehab in order to resell for top dollar. There was wood paneling inside the property that was completely removed and then the walls repainted. One of the kitchen walls was removed to create a larger and more flowing, modern space. In addition, counters were upgraded and cabinets redone.
This Oakland rehab deal was put under contract for $266,000. There was $16,500 in rehab work to be done, and the estimated time from acquisition to resale was four months, so a four month interest reserve account was also included with the loan. The funds for the rehab were held in a fund control account, and the borrower was able to access these funds to take advances in order to do the work on the property. After each draw we were sent pictures of the progress prior to the next draw being released.
The Oakland real estate market at this time was heating up, especially for entry level homes. This property was completed and back on the market in less than 90 days, and then sold very quickly after it hit the market.
We are able to help investors who are seeking private funding for their acquisition and rehab or fix and flip transactions. Our loans are typically based on the as complete or after repair value of the property, and the cost of rehab as well as expected interest payments are included in the loan. The goal of this structure is to have all funds available once the loan closes so that there are no out of pocket expenses for the investor/borrower unless there happens to be cost overruns on the rehab work to be done or if the loan is held for a longer period of time than anticipated.
If you have a rehab transaction that you need funding for, please visit our rehab lending page for more information, or call us directly to discuss!