Fix & Flip
Fix & Flip Loan for Single-Family Home in Santa Fe, New Mexico
- Loan Amount
- $1,161,750
- Loan-to-Purchase Price
- 75%
- Loan-to-After-Repair Value
- 61%
- Interest-Only Term
- 12 Months
- Private Loan Type
- Fix & Flip
- Approx. Funding Date
- November 12, 2024
Deal Summary
Myers Capital Hawaii, a mortgage banking company and direct private lender, collaborated with its affiliate Koa Mortgage Fund, a pooled mortgage debt fund, to provide a $1,161,750 first-lien position fix and flip loan for a single-family home in Santa Fe, NM. We funded 100% of the $693,000 renovation budget and 75% of the $625,000 purchase price, while the Borrower contributed 25% cash to the purchase at closing. The loan-to-after-repair value was 61%. The renovation budget will be used to make significant value-add upgrades. Initially, the Borrower approached a large institutional lender but was denied funding at the last minute. Koa Mortgage Fund stepped in with a creative financing solution, ensuring the deal proceeded without delay. The Borrower had excellent credit. They plan to sell the property upon completing the renovations. The subject property is approximately 3,084 square feet set in a 9,583-square-foot lot. The loan carries a 13.5% interest rate with a 12-month term. This fix and flip loan was funded in November 2024.
Deal Highlights
- Borrower purchased a large single-family property in Santa Fe, New Mexico.
- The rehab funds will be used to make significant value-add renovations to the property.
- Borrower was initially denied at the 11th hour by a large institutional lender.
- Exit Strategy: Complete the rehab, refinance the loan, and keep property as a short-term rental.
Property & Loan Details
- Property Type
- Single Family Residence
- Property City
- Santa Fe
- Property State
- NM
- Loan Term (months)
- 12
- Lien Type
- 1st Mortgage
- Payment Type
- Interest Only
- Purchase Price
- $625,000
- Borrower's Contribution to Purchase
- 25%
- Source of Borrower's Contribution
- Cash
- Renovation Budget
- $693,000
- Renovation Budget Funded
- 100%
- After-Repair Value
- $1,161,750
- Location Type
- Rural
- Property Condition
- Good
- Occupancy at Closing
- Vacant
- Building Square Footage
- 3,084
- Lot Square Footage
- 9,583
- Borrower's Plan
- Rehab and Rent
- Exit Strategy
- Refinance
- Borrower Credit Rating
- Excellent
- Interest Rate
- 13.5%
Loan Originator
Reed Myers
Principal
Reed is also Principal of Myers Capital, an award-winning, privately-owned residential and commercial mortgage banking company and direct private lender based in Honolulu, Hawaii. As a second-generation family business owner, Reed is personally involved in over $2 billion in loan originations, helping thousands of clients throughout the country. He holds active mortgage loan origination licenses in Hawaii and multiple states. He is also an experienced real estate investor throughout Hawaii and the mainland. Myers Capital provides efficient mortgage lending and real estate advisory services in 42 states.
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