Recently Funded Fix & Flip Loan In Salem, Oregon

Loan Scenario:

This fix and flip loan funded a single-family home in Salem, Oregon. Specifically, a first-time investor purchased the property for $322,000 and set a rehab budget of $54,650. American Heritage Lending funded $320,153, so the loan carries a Loan-to-Cost of 85.00%. As a result, the Loan-to-After Repair Value lands at 68.56%. Notably, the investor expects the home to reach an After Repair Value of $467,000. Also, AHL structured the loan as a 12-month interest-only term. Therefore, the borrower can focus on the rehab while keeping monthly costs low. Because this is the investor’s first project, the high-leverage structure matters even more.

First, the project starts with general construction work and labor. Then, the crew installs wood and plastic components. Next, the work covers door and window openings. From there, the team adds interior finishes and updates the toilet, bath, and laundry spaces. Also, the scope includes new kitchen appliances and countertop work. Furthermore, the build addresses full plumbing and electrical systems. Finally, the project wraps up with exterior improvements.

Salem continues to draw steady buyer demand. Specifically, tight inventory keeps updated homes moving quickly. Moreover, the market favors move-in-ready listings, so a full rehab fits local conditions well. Consequently, the investor stands in a solid spot for resale.

Overall, this deal shows how AHL backs new investors. Specifically, the 85.00% LTC structure gives a first-timer real leverage. As a result, the borrower can take on a full rehab without heavy upfront cash. Furthermore, the interest-only term keeps the project flexible from start to finish.