Condominiums can make a great investment for a real estate investor. Lower price points make it easier to hold on to and rent out or minimize the rehab budget to improve the asset and sell it quickly. The lower price points of condominiums also allow families to buy real estate in neighborhoods where single family homes would be much more expensive. This particular deal is in a great area within Scottsdale and the investor purchased a unit that needs minimal updating. Once the improvements are made our borrower should make a nice return because of the value he was able to purchase the unit for.
The terms given on this specific loan are as follows:
Loan Type: Condominium Fix and Flip
Loan Amount: $170,000
Purchase Price: $240,000
Term: 6-months
Interest Rate: 13.9% I/O
Loan Type: Fix and Flip