Loan Scenario:

American Heritage Lending funded a $407,250 fix-and-flip purchase loan on a single-family detached home in Oak Park, Illinois, giving a first-time investor the capital to acquire and reposition a property in one of Chicago’s most sought-after inner-ring suburbs. The home carried an as-is value of $405,000, and the project pencils to a $650,000 after-repair value. Specifically, a $75,000 rehab budget funds the work, and AHL structured the deal at 84.84% loan-to-cost and 62.65% loan-to-ARV, keeping leverage grounded in the finished value. The loan closed on a 12-month interest-only term, which keeps carrying costs light while the borrower executes the renovation. Because this is a first project, the interest-only structure matters: it frees up cash flow so a newer operator can focus on the construction rather than a heavy monthly payment.

The scope of work is foundation-first, reflecting a home that needs its bones addressed before cosmetics. First, the crew demos for plumbing and completes general plumbing and water-supply work, with permits pulled up front. Then foundation crack repair, site and project prep, shrub removal, and a rented security fence set the stage. Next, the general contractor supervises the phase-one demo. From there, the foundation wall is replaced and a drain-tile system with a sump pump and pit is installed. Finally, masonry and chimney repairs close out the structural work.

Oak Park anchors the near-western edge of Cook County, directly bordering Chicago’s Austin neighborhood, with CTA Green and Blue Line stops plus Metra service putting downtown Chicago minutes away. The village is famous for its architecture, home to the Frank Lloyd Wright Home and Studio and the largest concentration of Wright-designed buildings anywhere, and it is Ernest Hemingway’s birthplace. That walkable, transit-rich, historic character keeps buyer demand steady and resale liquid.

Overall, this deal shows how American Heritage Lending backs investors with practical high-leverage financing. Measured leverage against a strong ARV and a light interest-only structure give the borrower room to complete the work and exit into a deep, well-established suburban market.

Similar Recently Funded Case Studies: Fix & Flip Loan in Brookhaven, PA  •  Fix & Flip Loan in East Bend, NC  •  Fix & Flip Loan in Woodbridge, VA

Additional Images