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Lexington, KY – Fix and Flip
An inexperienced flipper found a home in Lexington, Kentucky, that had decreased in list price by $40,000. He saw the opportunity to purchase the investment property and made an offer at an even lower price, making the purchase at $150,000—nearly $90,000 below the initial asking price.
By the Numbers:
$152,750
Loan Amount
$150,000
Purchase Price
$46,000
Rehab Budget
78%
Blended Loan to Cost Leverage
$235,000
Appraised After-Repair Value
65%
Loan to ARV Leverage
The Opportunity
An inexperienced flipper found a home in Lexington, Kentucky, that had decreased in list price by $40,000. He saw the opportunity to purchase the investment property and made an offer at an even lower price, making the purchase at $150,000—nearly $90,000 below the initial asking price.
The home had some of its original hardwoods but needed significant updates, especially in the kitchen and two bathrooms. A broker brought the deal to Lima One for financing.
The Solution
Lima One financed the investor with risk-adjusted pricing that allowed him to complete the deal successfully. After completing the rehab, the investor decided to hold the property and refinanced it, with no prepayment penalty on the flip loan.
The flipper gained experienced and captured profit, setting him up for future success.
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