See the potential.
Understand the plan.

Purchase budget

$195,000

Renovation budget

$55,000

Planned exit

Resale

One potential structure combines acquisition financing with renovation draws. The investor would also need to cover the remaining project budget, closing costs, financing costs, and reserves.

Purchase budget

$180,000

Renovation budget

$40,000

Target finished value

$300,000

Modeled refinance LTV

75%

Potential refinance loan

$225,000

Bridge principal payoff

$190,000

Estimated cash back at refinanceBefore closing costs and fees.

$35,000

Planned exit

Cash-out refinance and hold

The $190,000 bridge would leave $30,000 of the $220,000 purchase and renovation budget to the investor, plus closing costs, financing costs, carrying costs, and reserves. At a $300,000 appraised value, a 75% LTV cash-out refinance would total $225,000. After paying off $190,000 of bridge principal, $35,000 would remain before refinance costs and any additional payoff charges. That is returned equity, not profit; recovering all cash invested is not guaranteed. Actual proceeds also depend on qualifying rent, debt coverage, seasoning, and lender approval.

Land budget

$90,000

Construction budget

$260,000

Planned exit

Completed-home sale

A potential facility would fund against an agreed schedule of values, with inspections and draw milestones. The builder would cover the remaining budget, required equity, costs, and contingency. Approval would depend on the complete deal.

Purchase budget

$1,000,000

Modeled loan to value

75%

Purchase equity

$250,000

Planned exit

Long-term rental hold

A potential DSCR loan would depend on qualifying rent, the proposed payment, taxes, insurance, and any association dues. The investor would contribute purchase equity plus closing costs and required reserves. Rent and value must support the requested loan amount.

Portfolio value

$1,500,000

Existing debt

$720,000

Proceeds before costs

$280,000

Planned exit

Hold the portfolio

The modeled loan is approximately 67% of portfolio value. Actual proceeds would be reduced by closing costs, reserves, and any payoff charges. Combined rental income, property eligibility, and individual release terms would determine whether one facility fits the portfolio.

A-to-B purchase

$600,000

B-to-C resale

$650,000

Spread before costs

$50,000

Planned exit

Same-day resale

Transactional capital could cover the purchase price of the first closing, subject to verified end-buyer funds and title approval. The spread is before funding fees and both closings’ costs. The two contracts and disbursement sequence need to work together; a delayed resale would require a different funding plan.

Purchase budget

$380,000

Renovation budget

$120,000

Target finished value

$650,000

Modeled refinance LTV

75%

Potential refinance loan

$487,500

Bridge principal payoff

$425,000

Estimated cash back at refinanceBefore closing costs and fees.

$62,500

Planned exit

Cash-out refinance and hold

The initial $425,000 facility would leave $75,000 of the purchase and renovation budget to the investor, plus closing costs, financing costs, carrying costs, and reserves. At a $650,000 appraised value, a 75% LTV cash-out refinance would total $487,500. After paying off $425,000 of bridge principal, $62,500 would remain before refinance costs and any additional payoff charges. That would leave $12,500 of the original purchase and renovation equity in the deal, plus costs and reserves. Cash-out proceeds are returned equity, not profit. Actual refinance proceeds depend on appraised value, qualifying rent, debt coverage, seasoning, and lender approval.

Purchase budget

$550,000

Renovation budget

$200,000

Target finished value

$1,000,000

Planned exit

Renovate and sell

A potential $675,000 facility would cover 90% of the combined purchase and renovation budget, subject to the lender’s cost and value limits. The investor would cover the remaining $75,000 plus closing costs, financing costs, carrying costs, selling costs, and contingency. Comparable sales and a detailed scope would need to support the finished-value target.

Land budget

$220,000

Construction budget

$780,000

Target completed value

$1,350,000

Planned exit

Completed-home sale

The modeled facility covers 85% of the combined land and construction budget. The builder would contribute the remaining $150,000 plus any costs outside that budget, financing costs, and required reserves. Funding would be staged against approved work and inspections, with contractor review, permits, contingency, and value support required before approval.