Sharestates Success in New York Fix and Flip Market

new york fix and flipAs we’ve written recently, the New York real estate market is competitive yet ripe with opportunity. Sharestates was founded in the New York metro area and has completed a lot of deals here. We’ve funded everything from ground-up new construction to residential fix-and-flip projects. Year-over-year, Sharestates deal activity has increased by 28% in New York during the period from January through September.

Sharestates Real Estate Activity in New York

 

  • Sharestates has funded 694 New York loans to date for a total funded volume of $705,211,500
  • 434 of the loans funded were for residential properties
  • 6 of the loans funded were for mixed-use properties
  • 155 of the loans funded were for multi-family properties
  • 90 of the loans funded were for commercial properties
  • 9 of the loans funded were for land deals
  • Average loan size: $1,017,621.21
  • Average loan to value (LTV): 67%
  • Average renovation budget: $1,009,558
  • Average after repair value (ARV): 54% or $2,807,890

Residential Project Success Stories

The first residential project presented below successfully underwent a renovation project covering four individual units. The borrower acquired the property with the intent to “fix and flip” the units. The borrower structured their loan to receive five individual draws of capital over the course of the renovation project which included demolition, flooring, electrical, plumbing, HVAC, windows, doors, cabinetry, tiles, bathroom fixtures and more.

  • Appraised value: $1,300,000
  • loan amount: $1,080,000
  • LTV: 62%
  • After-repair value: $2,000,000
  • ARV: 54%

This residential property is located in the Bedford-Stuyvesant neighborhood of Brooklyn, NY. Bedford-Stuyvesant or “Bed-Stuy” is well known for its picturesque Victorian architecture, elegant brownstones and vibrant culture. The area is also noted for its proximity to many different New York City public transportation options which is ideal for commuters who work in the city’s central business districts. According to StreetEasy, the median sale price in Bedford-Stuyvesant is $716,000  with an average of 84 days on the market and a median rent price of $2,300. Compared to other brownstone Brooklyn neighborhoods, such as Park Slope with a median recorded sales price of $1,405,000, Bed-Stuy contains many value-add opportunities for real estate developers.

Pre-construction exterior appearance
Post construction exterior appearance
Pre-construction interior bathroom unit
Post construction interior bathroom unit
Pre-construction interior kitchen unit
Post construction interior kitchen unit

The next project success story funded by Sharestates was a 1-unit residential real estate loan. The borrower acquired the property with the goal to “fix and flip” the house. The borrower received $64,000 and structured the loan to include four individual draws of capital over the course of the renovation project which included everything from siding, plumbing, electrical, heating, insulation, wood floors, cabinetry, ceramic tiles, bathroom accessories and more.

The single-family home is located in Hempstead, New York. Hempstead is the oldest and largest town of Nassau County in Long Island, New York. The Nassau County area is immediately east of New York City and has often been known as a white collar commuter area with an average commute of only 48 minutes by Long Island Railroad. According to Realtor.com the average list price for a home in Nassau County is $598,000 and the average days on the market total 112.

  • Appraised value: $150,000
  • Loan amount: $184,000
  • LTV: 80%
  • After-repair value: $350,000
  • ARV: 53%

If you have a project that you would like to submit to Sharestates for consideration, click here. Sharestates is now funding loans in 46 states Nationwide.

Pre-construction appearance
Post construction appearance