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Case Study I Fix & Flip
Discover how a visionary investor, faced with daunting financing roadblocks, unlocked the secret to transforming a risky duplex project into an astonishing success story.
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Fix & Flip
December 12th 2024
Queens, NY
Single Family
Refinance and Fix & Flip to elevate property value significantly
3 min read
A visionary general contractor with a knack for flipping houses embarked on what was to be his most challenging project yet: transforming a single lot into two brand-new duplex homes.
Facing skepticism from traditional lenders due to the complexity of this ground-up construction and his lack of direct experience in such projects, the investor found an ally in Simon Rishty.
Simon and the team at Express Capital Financing went above and beyond, employing a customized approach that leveraged the borrower's substantial flipping experience, ultimately securing financing that nearly reached 90% loan-to-cost. This success story shines a light on the importance of having a lender who not only understands the unique challenges of real estate investment but also champions the visions of their clients.
The borrower aimed to subdivide a lot into two properties, demolish the existing structure, and construct two new two-unit homes from the ground up—a venture that was substantially more ambitious than any of his previous deals.
This complex project encountered skepticism from many lenders due to its ambitious scope, the borrower's limited experience in ground-up construction as an investor, and a valuation mismatch where the site's value was initially appraised lower than the purchase price.
Simon approached the situation with a tailor-made strategy. Recognizing the borrower's existing expertise and potential for success, Simon engaged directly with the Department of Buildings and the project's architect to thoroughly understand and get comfortable with the investment strategy before the subdivision was executed. By collaborating with a local appraiser who had a deep understanding of the investment and the market, they were able to secure a site value that didn't limit the borrower's financing amount.
Moreover, the team at Express Capital Financing employed unconventional methods to verify the borrower's experience, considering previous ground-up projects he had completed as a general contractor, even though he wasn't on the title. This flexible and understanding approach enabled the project to qualify for financing under the Fix & Flip loan program, despite traditionally stringent requirements for ground-up construction loans.
This reconstruction project stands as a testament to the power of innovative financing solutions, expert guidance, and perseverance in the face of challenges. Through the dedicated support of Simon Rishty and Express Capital Financing, the investor successfully navigated the intricacies of his first ground-up construction project, underscoring the importance of selecting a lender that believes in its clients' visions and is willing to advocate passionately for their success.
If you’re facing similar challenges with complex property developments or if traditional lenders have turned you away, we at Express Capital Financing are ready to lend support. Just like we did for this daring contractor, our team can provide tailored solutions that recognize your expertise and potential rather than just numbers on a page.Â
We go the extra mile to understand and support your project with innovative, flexible financing options that make sense.Â
Contact us today to discuss how we can help turn your real estate ambitions into your next big success.Â
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Fix & Flip
December 12th, 2024
Queens, NY
Single Family
Refinance and Fix & Flip to elevate property value significantly
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