Deal snapshot
| Location | Fayetteville, North Carolina |
| Property type | Single-family ranch (3/2) |
| Loan type | Fix and flip hard money — 100% LTC |
| Loan amount | $178,000 (100% of purchase + rehab) |
| Close time | 8 business days |
Investor challenge
A first-time Fayetteville sponsor found a Fort Bragg-adjacent ranch with strong ARV lift but only $3,000 liquid and a 600 FICO. Conventional and most hard money shops required 20%–25% cash in — killing the spread before rehab started.
Jaken’s solution
Jaken structured 100% LTC hard money at 11.25% interest-only on a file where ARV, scope, and resale liquidity supported full leverage. Proof of funds on Day 2 beat a conventional buyer; file closed on Day 8 with LLC vesting and milestone draws tied to scope.
Outcome
After $46,000 rehab and 4.5-month hold, the property sold at $248,000 ARV for ~$31,200 net profit. The sponsor recycled capital into a second Cumberland County acquisition.
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Acquisition
Property: 3/2 ranch — dated kitchen/baths, functional mechanicals
Purchase: $132,000 · LLC vesting
Close: Day 8 · 100% LTC at 11.25% IO
Cash in: ~$3,000 (EMD + inspection)
Rehab and carry
| Scope | Cost |
|---|---|
| Kitchen + baths | $18,500 |
| Flooring + paint | $9,200 |
| Exterior + landscaping | $8,800 |
| Mechanical buffer | $9,500 |
| Total rehab | $46,000 |
Hold: 4.5 months · IO carry ~$7,500 · Insurance/utilities ~$1,600
Exit
| Line item | Amount |
|---|---|
| ARV sale | $248,000 |
| Sale costs (8%) | −$19,840 |
| Loan payoff | −$178,000 |
| Cash in + carry | −$12,100 |
| Net profit | ~$31,200 |
How 100% LTC was possible at a 600 FICO
This file looks aggressive until you read it the way an asset-based underwriter does. The decision rested on three numbers, not the credit score: a $132K purchase well under the $248K ARV, a defined $46K scope, and a Fort Bragg-adjacent submarket with fast resale liquidity. With a roughly 72% all-in-to-ARV ratio, the collateral carried the risk — so the lender could cover 100% of purchase and rehab while the sponsor brought only earnest money and the inspection fee.
The score mattered for pricing (11.25% IO), not approval. What protected everyone was the spread and the exit: even with full leverage, 8% sale costs, and 4.5 months of carry, the deal cleared ~$31,200.
Takeaway: 100% LTC is the exception, not the rule, and it only appears when the basis-to-ARV gap is wide enough to absorb full leverage plus carry. Lead with the deal’s math — a strong asset and a credible exit beat a thin file with a high score.
Next steps
Model your Fayetteville spread: Fix and flip calculator · Pre-qualify · (833) 264-7776