Loan to Value
Total Loan
Case Study I Fix & Flip
When a surprisingly low property appraisal threatened to derail a major investment, clever financing solutions such as expanding the loan-to-value thresholds and reducing the interest reserve to 0 effectively rescued the deal.
Loan to Value
Total Loan
Total Loan Amount
Interest Rate
Loan To Value
Loan To Cost
ARLTV
Total Loan
Amount
Interest
Rate
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Value
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Cost
ARLTV
Fix & Flip
November 5th, 2024
Bethel, CT
Single Family
Leverage our relationship and the client's proven experience to overcome the challenge of a lower-than-expected property appraisal.
3 min read
Faced with a low property appraisal that threatened the financial viability of a significant investment, Ben Shrara and the team at Express Capital Financing crafted an innovative solution: they increased the ARLTV ratio beyond typical limits and reduced the interest reserve to zero.
This strategic decision not only salvaged the project by providing the necessary capital but also reinforced the importance of adaptability and strong client relationships in the face of unexpected financial challenges. The outcome demonstrated the transformative impact of custom-tailored financing solutions in ensuring the success of complex real estate deals.
The project initially seemed like a routine investment for our seasoned client, necessitating a loan that covered 90% of the property's purchase price and 100% of the renovation costs. However, complexities surfaced when the property in question was appraised at a lower value than anticipated, threatening to considerably reduce the loan amount available under typical lending conditions.
Understanding the nuances of the deal and the importance of client relationships, Ben Shrara and the team at Express Capital Financing saw a way through the impasse. Leveraging their deep industry experience and trust in the client’s track record, they proposed an unprecedented solution: adjusting the After Repair Loan to Value (ARLTV) ratio to exceed the usual 70% limitation, and importantly, reducing the interest reserve to zero.
This innovative, custom-tailored solution was crafted specifically to counteract the impact of the low appraisal, effectively increasing the borrowing limit and alleviating the financial strain caused by higher upfront costs.
Through strategic foresight, a custom-tailored loan solution, and a foundational relationship built on trust and proven success, Ben Shrara, and Express Capital Financing transformed a potential setback into a resounding success.
Flip with Confidence and Customized Financing
When your fix and flip project faces unforeseen financial roadblocks — perhaps a surprisingly low property appraisal — it can throw off your timeline or threaten the viability of your investment. This is when the expertise and support of Express Capital Financing becomes invaluable. With the guidance of our experienced loan officers like Ben Shrara, we can customize fix and flip loans to overcome your project’s challenges.
Contact us today to secure a loan that recognizes the potential of your project and sets you on the path to success.
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Fix & Flip
November 5th, 2024
Bethel, CT
Single Family
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