Jacksonville, Florida Hard Money Lender
Hard Money Loan Terms
Florida Rehab Loans
Location: Jacksonville, FL
Purchase Price: $ 30,500
Reno Amt: $ 75,000
Loan Amt: $ 95,500
Actual Term: 5 mo.
Sell Price: $ 145,000
Net Profit: $ 27,000
Cash-on-Cash: 200%
Affordable housing is one of those types of projects that not many people want to get involved with due to its perceived profitability. However, when approached with a sense of process and repetitiveness affordable housing can be lucrative. This project goes to show it. But at $30,500…. yes that’s right … $30,500 the investor had a lot of room to improve the property and make a profit.
Fresh look with a retro design
A fresh exterior paint job, even with brick can be the difference between thousands of dollars, and between no to a lot of interest. Not to mention the location. This project while in a neighborhood that constantly would rate a C to C-, is right across the street from Ribault River in Jacksonville. If you head over to Zillow just to get an idea of property values now, this property has a supposed value of $260K+.
Down to the studs
As you can see this photo was taken mid-project, but by the time this was done, the electric, plumbing, and HVAC were already inspected and completed, and this was by month 2. Now, much of the speed of a project has to do with the efficiency of the city, yet investors can help speed the process along as well. By ensuring that all appropriate documents are completed correctly, submitted on time, and in person, you can go a long way to curb your downtime for your contractors.
Builders grade kitchen for rental purposes
Not every kitchen needs to be a Chip and JoAnne Gaines type of project. Keep it simple, keep it safe as the saying goes. Our investor did not add in a lot of top-line finishes yet the finished product was perfect for an affordable housing finish. This can also be a hard change of pace, especially for the “go all out” rehabber. They are used to spending a lot of capital to make a project pop, yet in these type of projects the need is not high-end but efficiency and minimal costs. Know your market
Make the most of every space
One aspect we really appreciated about our investor was the ability to make use of every available space. Whether it was a closet or simply an added storage space somewhere they made the home feel as if there was more than enough storage for the whole family and then some. We could have been convinced that the borrower was an heir to the IKEA family!
Modernizing the standard tub
Repurposing bathtubs are a great way to save on costs yet bring a fresh new look to an outdated bathroom. By using drop-in tub covers you utilize the existing framework of the tub while adding newness to the room. Remember affordable housing so you won’t get top dollar and you have to identify ways to maximize your profit while keeping costs reduced. At the end of the day our investor may have only made around $27K, but they only had $10K at work in the project. After it was all said and done they earned a 200%+ return on their capital in only 5 months! Believe me, we did several projects a year with this client and their annual return was well into the mid-triple digits on the capital they put to work on these projects.
Are you looking for funding on your next Florida real estate deal? Why not work with a Florida Private Lender!
Are you interested to see what loan programs Blue Bay Capital has to offer? We fund Fix and Flippers, Builders, and Wholesalers!
