Hey everyone! Our iFC CASE STUDIES give you real-life details about how other investors used our loan products to build their portfolios!
Location: Philadelphia, PA
Loan Amount: $ 128,413
iFC Loan Product: Fix and Flip
Property Type: Single Family Residential
Loan Closing Date: 01/04/22
Purchase Price: $ 87,000
Construction Budget: $ 64,075
ARV: $ 210,000
Loan to Cost: 85%
Length of Loan: 12 Months
Erik, one of our super-on-it i Fund Cities loan officers, met a property investor at a local real estate meetup event in Philadelphia (btw, come on out and network with an excellent group of other investors on Tuesday nights at the Hotel Sofitel)!
The investor had already done several real estate investment projects in Philadelphia, including fix and flips, rental, and multifamily. This deal was a fix and flip.
His fix and flip deal was supposed to close around October 2021. But, as the closing date drew near, the title company found out that there was an issue with clearing a city lien from the property title. They needed a city tax release, which would hold up closing. As the closing date kept getting pushed back, the investor’s private money backers wanted to place their money elsewhere, and they pulled out.
That is when the investor called Erik. Erik told him that i Fund Cities would stand by him and be there to close this loan once the lien was cleared. Erik immediately got the appraisal transferred into our name and began the underwriting process.
Erik assured this investor that iFC was here to customize his loan to fit the current needs surrounding the deal. We ended up fully funding the project construction along with 75% of the down payment for the purchase of the property.
Key Benefit to Borrower
Says Erik, “We won this deal by supporting a customer when other sources of capital weren’t available. Because of this, we hope that we have won a customer for life. In fact, we are in the process of running down this investor’s next deal!”
“This client called me the day after closing to say how much of a stress relief this was to get it to the closing table and how he thought the deal was lost multiple times before calling me,” says Erik.