The Joist Deal of The Week

Ralph Abbott

Today we are featuring a deal that was finished earlier this year by a borrower who utilized a Joist loan for the heavy construction project shown above. The property was originally owned by the city of Columbus, Ohio after it was foreclosed years ago. As you can see, the house was in rough shape; the exterior siding needed to be refinished, the studs needed to be replaced, and the interior needed to be redesigned. So the borrower had a lot of trouble securing a loan to purchase and repair the property, until they found Joist.

We first analyzed this property from top-to-bottom to garner an understanding of the true cost of repair. After some number crunching, we realized that this deal was a high-risk, high-margin opportunity. National lenders were not comfortable underwriting this property simply because they didn't go and see it in person. The location was great. The land was solid. And the financials worked. So we underwrote a loan which enabled the borrower to purchase and rehab the property in under a year. As you can see, the finished project turned out well with a beautiful rehab done by a now trusted borrower.

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