Usually, real estate investors don't like to be the ones to set the comps because of the inherent risk that comes with it, but this guy went for it. And good for him! Because in the end, he far exceeded even his own expectations.
The borrower originally set an expected ARV of $30,000 less than what he actually made! Just 10 days on the market, he received a hair away from full price offer. (Just trying to be accurate)
How'd he do it? Well, as the project progressed, the borrower was wise to keep an eye on the market. When he realized the demand, he knew he would be able to receive a higher dollar amount for the property, and so, he adjusted his construction budget. He installed nicer finishes, and in the end, it paid off. Needless to say, we at B.E. Lending are eagerly keeping up with all the other projects he's currently got going on with us.
Acquisition Loan Amount: $136,000
Construction Budget: $35,000
Cost of Loan (approximate): $11,000
Loan Length (approximate): 5 months
Purchase Price: $170,000
End Sale Price: $286,000
Location: 12th Street & Camelback Rd. (Phoenix, AZ)