FIX AND FLIP LOAN
Chicago, IL
BEFORE
AFTER
The Numbers Behind the Flip
Project Duration
March 2022 - December 2023
Loan Amount
$146,530
Purchase Price
$92,000
Construction Budget
$80,789
Client Contribution
$26,259
ARV
$235,000
Total Project Cost
$172,789
Resale Price
$239,000
*ARV at the time of initial funding
Profitability & Lessons Learned
An investor in Chicago, IL set out to transform a distressed property with a purchase price of $92,000 and a renovation budget of $80,789. With a total loan amount of $146,530, the project had a projected ARV of $235,000. While the investor successfully renovated and sold the home for $239,000, unexpected delays stretched the timeline from the original 9-month plan to 22 months. The extended hold time impacted profitability, highlighting the importance of efficient project management and market timing. Despite the challenges, the investor completed a quality renovation and gained valuable experience for future projects.
