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FixNFlip

11920 Skyway Ave Oklahoma City, OK

Two Oklahoma-based investors found a three-bedroom, two-bathroom home in Oklahoma City available at a steep discount.

By the Numbers:

$187,300

Loan Amount

$160,000

Purchase Price

$290,000

ARV

$51,300

Construction Budget

89%

Blended Loan to Cost

65%

Loan to After Repair Value

The Opportunity

Two Oklahoma-based investors found a three-bedroom, two-bathroom home in Oklahoma City available at a steep discount. The property was in great shape structurally but was dated and in need of new flooring, kitchen updates, and bathroom upgrades to be attractive for sale.

The investors saw great potential in the flip and looked for financing, which can be tricky in Oklahoma City based on the median property values in the area. But they had an ace in the hole because they had worked with Lima One previously on a California flip. So the investors turned to Lima One for a solution.

The Solution

Lima One provided an interest-only fix and flip loan on the Oklahoma City property, financing 100% of the rehab budget and 85% of the $160,000 purchase price. With a $290,000 after-repair value, this gave the investors 65% leverage on the ARV.

With financing in place, the flippers then moved forward on the project and to achieve significant profit on this diamond in the rough. The completed flip will enable them to get even better rates and terms on future flips with Lima One.

Based on the premier loan experience, the investors turned to Lima One again for financing on a DSCR loan on another property in Oklahoma City a couple of months later. Lima One continues to help these investors scale their business in Oklahoma and beyond.