North Carolina Featured Deal

Andrew Whitmire, ABL’s Territory Manager in the Carolinas, recently finalized a DSCR loan in Southport, North Carolina, with a new borrower.

The borrower initially engaged with another lender for a fix and flip loan but sought additional financing options from ABL.

The borrower already renovated the single-family home and contacted ABL to fund a rate and term refinance in order to pay off the rehab loan.

This property was appraised for $539,000 and ABL was able to offer 70% Loan To Value for a total loan amount of $377,300.

Upon assessing the deal, Andrew prioritized the rental income potential. Through AirDNA’s insights, he determined that the property held more value than he initially thought, given its location in a metropolitan area near Charlotte, North Carolina.

The borrower, considering between selling or renting out the property, faced a common dilemma for investors nearing decision time.

Balancing potential returns on investment, Andrew advised the borrower that relying solely on rental income might not yield the best results for this higher-value property.

Andrew leveraged short-term rental data to inform the underwriting process, providing the borrower with reassurance that if she opts not to sell the property immediately, alternative exit strategies will be viable.

Andrew transformed the deal into a short-term rental opportunity, tweaking the loan to lower the monthly payments and offering an interest-only option for the first 10 years, providing the borrower with improved cash flow.

Given the current interest rates, opting for a bridge loan didn’t seem like the best option, especially considering the borrower’s likely intention to sell the property eventually.

Southport, North Carolina, is renowned for its quaint ambiance and rich nautical history. The town’s appeal lies in its scenic waterfront, charming historic downtown, and easy access to nearby beaches.

It is a favored destination for visitors seeking natural beauty and relaxation, embraced by vacationers, and frequented by the movie industry.

With a DSCR of 1.33 this investment property provides the borrower with both stability and potential for growth in the thriving Southport real estate market. 

By using AirDNA data as a valuable tool to promptly assess whether a property aligns with a client’s needs, ABL can provide upfront insight on investors’ exit strategies without relying solely on appraisals, thereby expediting decision-making.

To learn more about Asset Based Lending’s DSCR Loans, or to work with Andrew on potential deals, get qualified today.