Fix and Flip Loan – Annapolis, MD

The Opportunity

A highly experienced flipper who had closed nearly 200 loans with Lima One wanted to rehab a luxury waterfront home in Annapolis, Maryland. The 6,000 square foot home, which sat on one acre at the entry of a cove of the Severn River, had been built in 1894 and needed cosmetic updates to maximize its potential on the market.

The flipper wanted to move fast to complete the purchase and start the rehab process. He reached out to his Lima One loan officer for financing.

The Solution

Lima One closed the nearly $2.8 million loan in just eight business days, taking advantage of self-guided inspections, one-day appraisals, and internal rehab budget reviews to move quickly on the deal. The result is 89% loan-to-cost leverage that covers 100% of the $650,000 rehab budget, and leverage at 70% of the $4.02 million after-repair value.

Lima One also gave the investor credit for his long history of successful flips with preferred pricing that minimized financing costs through the term of the 13-month loan. The quick close and low cost of funds empower the flipper to maximize profit on this showcase property.