Johnson City, TN – Fix and Flip

The Opportunity 

An experienced flipper who had not worked with Lima One before needed financing solutions for several flips in the East Tennessee community. One need was funding to flip a 5-bedroom house he was under contract to buy at $59K below the original asking price. 

The Johnson City home had good bones but needed higher-end finishes in the kitchen and bathrooms, along with exterior improvements designed to accentuate the beautiful mountain views. The investor also planned to finish the basement to add value to the home. He asked Lima One how he could maximize his loan-to-cost leverage and minimize cash down on the deal.  

The Solution 

Lima One financed the flip with a $316K loan and, based on the borrower’s successful track record in the market, offered maximum 92.5% loan to cost leverage. This included 100% of the rehab budget. The borrower used Lima One’s FastTrack hybrid appraisal to get to the closing table faster, with a three-week timeline from loan submission to funding.

Because the flipper got such a good deal on the purchase, the loan at 72% loan-to-ARV leverage leaves the investor with a healthy profit margin. And the flipper benefited from Lima One’s flexible underwriting that understands an investor’s strengths and uses them to make the financing solution better. The flipper now benefits from no interest on undrawn construction funds and Lima One’s in-house construction draws as he completes this flip and builds his real estate investment business.