Fix and Flip Loan – Rye, NY

The Opportunity

An investor found a unique Colonial home available in Rye, New York, a historic Westchester County suburb of New York located along the Long Island Sound. Because the property was in a flood zone and had multiple open permits, the property was not easy to close or finance. It also required a structural report during appraisal because it was over 100 years old.

Due to these challenges, the investor was able to negotiate a purchase price more than $200,000 below initial asking. He needed financing to flip the property from a lender that understood the property’s history and quirks as well as its potential. For the first time, he reached out to Lima One to see what private lending options looked like on this deal.

The Solution

Lima One provided a $1 million loan that included 100% financing for the $250,000 rehab budget plus 85% loan-to-cost leverage on the $885,000 purchase price. This high leverage limited the investor’s out-of-pocket costs at closing and during rehab.

Once the investor completes the flip in this bucolic suburb, he stands to claim around $700,000 in profit based on the appraised after-repair value. Lima One’s strong financing options and underwriting expertise unlocked this profitable opportunity on a property that presented challenges at first glance.