SFR FIX AND FLIP
JLJ Capital works with experienced originators, asset managers, and developers on providing short-term financing (generally 12 months or less) used for the purchase and refurbishment/construction of residential real estate projects to be re-sold after refurbishment/construction is complete.
RESIDENTIAL FIX & FLIP LOANS ARE NON-CONSUMER LOANS
Borrowers are primarily ‘fix and flip’ investors that typically sell the properties within 6 to 12 months of acquisition. Ideal borrowers should have a verifiable track record and liquidity. Loans are secured by first mortgage liens and personal guarantees in most cases.
CURRENTLY ACCEPTING PROPOSALS
|LOAN TYPE||Residential Fix and Flip|
|TOTAL COMMITMENT||Up to $5,000,000|
|SINGLE LOAN SIZE||$250,000 - $2,000,000|
|TERM||6 - 12 months (subject to discretionary 1 to 3 month incremental extensions with 0.50% fee)|
|INTEREST RATE||Approx. 9%-10% based on a margin over 30 Day LIBOR|
|LOAN TO VALUE "AS COMPLETE"||Up to 75%|
|LOAN TO COST||Up to 85%|
|PROPERTY||Single Family: 1-4 units, Multifamily: 5+ units, Mixed Use: Residential is more than 50%|
|ORIGINATION FEE||Greater of $1,500 or 1% - 3%|
|PERSONAL GUARANTEE||Yes in most cases|
|CLOSING TIMELINE||Less than 30 days|