Recently Funded Fix & Flip Loan In Chicago, Illinois

Loan Scenario:

This fix and flip project features a detached multi-unit property located in Chicago, Illinois. Specifically, a professional investor acquired the property for $164,000, with a rehab budget of $201,150. Therefore, American Heritage Lending provided $339,589 in funding, resulting in a Loan-to-Cost (LTC) of 93.00% and a Loan-to-After Repair Value (LTARV) of 62.89%. Once finished, the property is expected to reach an After Repair Value (ARV) of $540,000. Additionally, the loan is set up as a 12-month interest-only term. Because of this, the borrower has time and room to complete the full scope of work.

Notably, the rehab budget on this project exceeds the purchase price. As a result, this reflects the depth of the planned updates. First, the project begins with permits, site prep, and demo work. Then, structural work follows, including concrete, masonry, framing, roofing, and insulation. From there, exterior updates cover rain gutters, windows, and doors.

Next, interior work includes drywall, tile, flooring, cabinets, trim, and painting. Furthermore, full HVAC, electrical, and plumbing systems are part of the build. Finally, lighting, fixtures, and landscaping round out the project to deliver a move-in-ready multi-unit property.

Chicago’s South Lawndale area continues to draw investor interest, especially for multi-unit properties. Specifically, the area is known for its dense mix of small apartment buildings and steady demand. Consequently, fully updated multi-unit homes in this corridor remain well-placed for resale.

Overall, this deal shows how American Heritage Lending supports professional investors taking on major rehab projects. Specifically, 93% LTC paired with a 12-month interest-only term allows the borrower to focus on the build without tying up extra capital. As a result, the investor can complete a full property renewal while keeping cash available across their broader portfolio.