Recently Funded Fix And Flip Loan In Montgomery, AL

Loan Scenario:

This project highlights a fix and flip loan for a single-family property in Montgomery, Alabama. The investor purchased the home for $83,500 with a renovation budget of $42,570. American Heritage Lending provided $117,246 in financing, resulting in a Loan-to-Cost (LTC) of 93% and a Loan-to-After Repair Value (LTARV) of 62%. Upon completion, the property is targeted to reach an After Repair Value (ARV) of $190,000.

The financing was structured as a True Zero Point Loan, giving the investor a cost-effective solution while maximizing leverage and preserving cash for the construction timeline.

The borrower—an experienced investor—pursued a renovation plan that balanced essential systems with high-impact cosmetic upgrades. The scope included demolition of a dated primary suite bathroom, roof inspection and repairs, deck repairs, pressure washing of the exterior and concrete surfaces, full interior repaint with primer and touch-ups, HVAC replacement, installation of LVP flooring, cabinet repairs and repainting with new hardware, a new gas water heater, and electrical updates including switches, fixtures, and safety improvements. These improvements are designed to deliver a clean, move-in-ready product for local buyers.

With thoughtful budgeting and a flexible draw schedule, the project is positioned to transition efficiently from rehab to market, showcasing how AHL’s high-leverage, Zero Point options help experienced investors execute value-add projects with confidence.