Fix and flip bridge loans have helped many out-of-state investors looking to purchase multi-unit properties like our client. This investor was used to doing deals with US Bank on multi-family properties across the country. However, since the pandemic, US Bank has stopped this practice.
He wanted to purchase an 8-unit property on Ohio Street on the West Side of Chicago. We had a local community bank in Chicago that would be okay with the fact that he was an out-of-state investor. However, the cash-flow of this property did not show sufficient debt-service for the bank.
Regardless, we were still able to secure him an 18-month bridge loan on this fix and flip 8-unit building so he could acquire the property and have enough time to get it cash-flow sufficient. Then he will be able to refinance with this bank in about a year for a 20-year term at a pretty nice rate.