Loan Scenario:

American Heritage Lending funded a $479,400 fix and flip loan on a single-family detached home in Highland Park, Illinois, for an investor with limited experience backed by one verified value-add REO. This was a comprehensive renovation of a larger home: acquired at a $479,000 as-is value with an $85,000 rehab budget carrying it toward a $775,000 after-repair value. Specifically, the scope was extensive — new luxury vinyl plank flooring across roughly 2,344 square feet of first floor plus a 1,500-square-foot basement, a refaced kitchen with new appliances, drywall and paint replacing dated wood paneling and wallpaper throughout, remodeled bathrooms, siding repair and repaint, an expanded garage built out from a carport, and a modernized pool. Notably, the loan was written on a 12-month interest-only term. It closed at 85.00% loan-to-cost and a conservative 61.86% loan-to-after-repair-value.

Highland Park is an affluent community on Chicago’s North Shore, a lakefront corridor of established suburbs known for strong schools, mature neighborhoods, and consistently high buyer demand. In markets like this, quality renovations of dated housing stock tend to command a premium, and the wide spread between the as-is basis and the projected resale value reflects that upside. Because the borrower intends to sell on completion, the deep scope is aimed at repositioning an older home to North Shore buyer expectations. As a result, this Illinois project carries both a large value-add opportunity and a comfortable equity buffer.

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