FIX AND FLIP LOAN
Chicago, IL
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The Numbers Behind the Flip*
Project Duration
December 2021 - May 2023
Loan Amount
$231,200
Purchase Price
$150,000
Construction Budget
$122,000
Client Contribution
$41,000
Total Project Cost
$272,000
ARV*
$380,000
Resale Price
$385,000
*At the time of initial funding
In December 2021, Barnett REI Finance funded a $231,200 loan for a fix-and-flip in Chicago, IL, supporting the $150,000 purchase price and a $122,000 renovation budget. The project was originally structured to pay off in October 2022, but delays pushed the sale to May 2023, creating additional holding and carrying costs for the borrower. While the property ultimately sold for $385,000, just above the $380,000 ARV, the extended timeline compressed overall profitability. This project serves as a reminder that even when resale prices hold, longer-than-expected timelines can significantly impact returns.
Profitability & Lessons Learned
Inside the Deal
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7830 S Merrill
