Looking for a loan of $300K, ARV is $5M+

[Sharon Vasvani]

Property is in Zip code 95129

Client purchased home for approx $2.5M, with a mortgage of only $550K

Later client took out a HELOC later for $700K, bringing the total liens on the property to $1,25M

Property was demolished and rebuild is in progress. It is about 60% complete at this time. As- is value is approx $3.5M. ARV after completion is over $5.2M.

Client is looking to get an add'l $300K to complete the rebuild, much of this will be for finishes.

Loan options:

1) Loan of $300K (probably hard to find, as it would be a 3rd lien)

2) Loan of $1M ( use this to payoff the HELOC of $700K, and get cash out of $300K)

3) Loan of $1.55M (to payoff the 1st and HELOC), with cash out of $300K

Client is considering flipping the property due to the market being high in the area.

Let me know if you need any add'l information.

Looking forward to seeing some options