$466,000

In July 2020, Barnett REI Finance funded a $252,800 loan for a fix-and-flip in Philadelphia, PA, backing the $160,000 purchase and a $156,000 renovation budget with an initial ARV of $409,000. The project took significantly longer than expected, not selling until March 2022, which led to increased carry costs from the extended hold. However, the additional time in the market ultimately worked in the borrower’s favor, with the property selling for $466,000, well above the original ARV. This project serves as a reminder that while longer timelines can impact profitability through added holding costs, they can also create opportunity when market conditions strengthen.